Jerome Powell's Remarks Send Crypto Market Tumbling: Here's How It Reacted

| March 8, 2025

So our role with crypto really is to look at the banks and we think banks are perfectly able to serve crypto customers as long as they understand and can manage the risks and it’s safe and sound, many of our — a good number of our banks that we regulate and supervise do that. The threshold has been a little higher for banks engaging in crypto activities, and that’s because they’re so new and we don’t want to make the mistake — if you’re making a choice to conduct that activity inside a bank which is inside the Federal safety net, with deposit insurance, then you want to be pretty sure that it’s a safe and sound activity. So, we’re not against innovation, and we certainly don’t want to take actions that would cause banks to terminate customers who are perfectly legal just because of excess risk aversion maybe related to regulation and supervision.

Federal Reserve Chairman Jerome Powell’s recent comments on interest rates have sparked a notable reaction in the cryptocurrency market. Speaking at a policy forum in New York on Friday, Powell emphasized the Fed’s “wait-and-see” approach, signaling that the central bank is in no rush to make any further interest rate adjustments. He stressed the need for patience as the Fed continues to monitor economic developments and seek greater clarity before deciding on future policy changes.

Powell’s remarks contradicted growing market expectations for interest rate cuts later this year, with traders pricing in reductions by as much as three-quarters of a percentage point by the end of 2025. Powell’s cautious tone, however, suggested that the Fed is more likely to maintain its current stance for now, further fueling market uncertainty.

Crypto Market Reacts with Significant Losses

The cryptocurrency market responded negatively to Powell’s speech, with significant sell-offs occurring across major assets. In the 24 hours following the remarks, the market saw nearly $493 million in liquidations, according to CoinGlass data.

Altcoins, including XRP, Cardano (ADA), and Solana (SOL), were hit hardest. XRP plunged 8.11%, falling to $2.33 from a high of $2.98 earlier in the week, marking a nearly 20% loss from its peak. Cardano’s ADA dropped more than 8%, while Solana’s SOL saw a 4% dip to $138. Other altcoins, such as SUI, HBAR, and Jito, experienced losses between 9% and 12%. Meanwhile, the top 100 cryptocurrencies mostly remained in the red, with few exceptions.

Bitcoin, typically more resilient during market fluctuations, saw a decline of 3.38%, trading at $85,950. Although it underperformed compared to its usual behavior, Bitcoin’s drop was less severe than the broader altcoin sell-off, highlighting its relatively stronger position in times of uncertainty.

Also read: BNB Chain Unveils Pascal Hardfork to Boost Blockchain Performance

Jerome Powell’s Remarks Send Crypto Market Tumbling: Here’s How It Reacted

Crypto Market Reacts with Significant Losses