Powell speech steadies crypto market: Fed hints at slower balance-sheet runoff

**Federal Reserve Chair Jerome Powell Stabilizes Cryptocurrency Markets with Balance Sheet Policy Hints**

Federal Reserve Chair Jerome Powell's latest speech at the National Association for Business Economics (NABE) delivered crucial signals that steadied volatile cryptocurrency markets, including Bitcoin and major altcoins. Powell's cautious yet technical remarks indicated the Fed may soon decelerate its aggressive balance-sheet reduction strategy, providing relief to digital asset investors who have closely monitored monetary policy impacts on crypto valuations.

The cryptocurrency market responded positively to Powell's dovish undertones, with traders interpreting the potential policy shift as supportive for risk assets including Bitcoin, Ethereum, and DeFi tokens. Powell's measured approach suggests the central bank recognizes current economic uncertainties, prompting investors to reassess their positions across blockchain-based assets.

Market participants now focus intensely on upcoming inflation data and the next Consumer Price Index (CPI) release, which could significantly influence cryptocurrency price movements. The Fed's potential pivot toward slower quantitative tightening represents a critical inflection point for digital assets, as reduced monetary restriction typically benefits cryptocurrency adoption and institutional investment flows.

This development reinforces the growing correlation between traditional monetary policy and cryptocurrency market dynamics in 2024.