This is the largest correction recorded during a single hour of trading since July 14, when BTC retraced 1.14%
These developments from Powell’s speech added to the revising of a prior line in the Fed’s statement that uncertainty about the outlook “has diminished” to “remains elevated,” a backpedal suggesting lingering risks.
As a result, traders stopped fully pricing a rate cut in October, given as the most certain.
Yet, much of the improvement reflected lower imports rather than robust domestic demand, according to a note from Bitfinex analysts. Final sales rose just 1.2%, while core Personal consumption expenditures (PCE) eased to 2.5% quarter-over-quarter, and 2.9% year-over-year.
That backdrop leaves the Fed inclined to hold steady amid “persistent inflationary risks.”
With the Fed softening its confidence and highlighting elevated uncertainty, Bitfinex analysts highlighted that crypto’s relief bid lacked fuel.
If policymakers continue to flag sticky inflation or question the quality of GDP growth, they expect a measured downside. As a result, Bitcoin could probe $114K or lower, with ETH also softening.
The analysts warned that in the post-FOMC window, traders should watch order-flow response, volatility skew shifts, and funding-rate dynamics for confirmation of direction.
