Bitcoin fell to a near two week low on Tuesday, sliding toward 112,000 as traders lightened exposure before a closely watched speech by Federal Reserve Chair Jerome Powell and as fresh trade tensions between Washington and Beijing stirred a broader risk reset.
The move extends a pullback from the October 6 peak above 126,000 that followed a torrid summer advance, leaving dip buyers more cautious after last weekend’s sharp deleveraging across crypto markets.
The tone across risk assets has soured since a new round of U.S.-China measures on trade and shipping revived worries about global growth.
In crypto, the shift showed up in thinner order books and smaller position sizes, with several exchanges tightening collateral requirements after the latest bout of forced liquidations.
Powell’s appearance comes at a delicate moment for markets that have been tugged between evidence of cooling demand and sticky service sector inflation.
Powell underscored the value of transparency, saying the Fed’s job is easier “when the public understands what the Federal Reserve does and why.”
Traders are focused less on the balance sheet history he outlined and more on any hints about the glide path for rates into year end and 2026.
A tone that leans patient would likely keep real yields elevated, a headwind for long duration bets like crypto, a clearer nod to growth risks could ease the pressure.
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After heavy two way trading earlier this month, U.S. spot bitcoin exchange traded funds swung to net outflows of about $326 million on Monday, according to daily tallies tracked by independent data provider Farside Investors.
This reversal follows a burst of inflows during the rally to all time highs and suggests institutions trimmed risk into the Fed event rather than adding on weakness.
Retail flows were similarly tentative, with on-chain metrics showing slower stablecoin deployment and fewer large wallet additions than during August and September.
The campaign-season fight over rates and growth has turned up in unexpected places, including social media spats that echo the long-running tension between the central bank and its critics.
Our recent explainer on how a viral cartoon revives clash between Powell and political figures sets out why the Fed’s communication matters for risk assets when sentiment is fragile.
Some large cap tokens held their ground, but altcoin leadership has faded compared with September’s bounce, when an altcoin rally heats up piece of the market front ran bitcoin’s surge.
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Continued regulatory scrutiny has kept parts of the ETF complex on edge, earlier moves by the securities regulator weighed on non-bitcoin products, as we reported when an SEC move prompts pullback across several proposed funds.
Stablecoin issuers and corporates have periodically supported the market on deep dips, a dynamic that was reinforced when Tether quietly grabs 8,888 Bitcoin for its reserves.
Longer horizon bulls also point to valuation context, including a $25 trillion comparison that frames bitcoin’s market value against traditional assets, though such comparisons offer little timing help when macro dominates.
