Bitcoin Rises as Powell’s Silence Fuels Hopes of Policy Easing

Bitcoin regained momentum after U.S. Federal Reserve Chair Jerome Powell refrained from offering any comments on the economy or monetary policy during a speech at Stanford University. His silence — expected due to the blackout period ahead of next week’s Fed meeting — added to growing speculation that the central bank may soon move toward further policy easing, including the possibility of a December rate cut.

The absence of any signals from the Fed Chair came just as new U.S. manufacturing data pointed to continued weakness. The latest ISM Manufacturing PMI showed the sector contracting for the ninth straight month, with orders falling and price pressures rising. These figures have strengthened expectations that the Fed may deliver another rate cut, with market indicators showing the probability hovering near 87%. Investors see looser monetary policy as a strong tailwind for risk assets, especially cryptocurrencies.

Bitcoin reacted quickly, climbing above $87,000 after briefly dipping below $84,000. Trading volumes surged as traders bought the dip, though derivatives market sentiment remained mixed. Some platforms saw a rise in open interest, while others recorded declines, reflecting caution ahead of the Fed decision.

At the same time, broader discussions across the crypto community grew louder regarding sudden outflows from major exchanges and sharp intraday swings. While some view these movements as normal rebalancing or automated liquidations, others suspect more coordinated activity. Regardless of the cause, volatility has clearly returned, with bitcoin’s 24-hour price range stretching from the low $83,000s to above $91,000.

Despite the turbulence, the overall stance in the market remains optimistic. Many traders believe any near-term dips will offer new buying opportunities, especially if monetary conditions continue to loosen into the end of the year.

Bitcoin’s impressive rebound reflects a familiar pattern: whenever uncertainty surrounds traditional financial policy, investors often look toward digital assets as an alternative. With the final Fed meeting of the year approaching, the crypto market is bracing for another defining moment — one that could set the tone for the months ahead.