Powell's Comments Spark Bitcoin Dip | Big Holders Still Bullish
Edited By
Oscar Martinez
The Federal Reserve's recent rate cut sent Bitcoin tumbling, but on-chain data reveals major holders remain optimistic about the cryptocurrency's future. Following the Fed’s announcement yesterday, Bitcoin fell to about $109,000 during Chairman Powell’s speech, wiping out nearly $300 billion from the crypto market in just one day.
Market Reaction and Recovery
Traders reacted sharply when Powell mentioned that a December rate cut "isn’t guaranteed.” Initial fears were palpable as Bitcoin's value plummeted, yet the digital asset rebounded quickly, currently hovering around $111,000. The Federal Reserve also confirmed it will cease balance sheet reduction starting December 1, a move that could signal increased liquidity returning to the market.
“Short term volatility’s still possible, but we’re seeing a stronger setup now,” one expert noted. Historically, Bitcoin often recovers within days or weeks after similar announcements.
Reasons for Optimism
Several factors are encouraging investors: good earnings from big tech are expected this week, which commonly boosts risk assets like crypto. Furthermore, potential talks between President Trump and Xi Jinping may ease trade tensions.
Michael Saylor, a well-known crypto advocate, reiterated his long-term bullish stance on Bitcoin, further fueling confidence among larger investors. According to on-chain analysis, wallets holding Bitcoin have added more than 45,000 coins since October's market drop.
"The whale accumulation data is the most telling signal here," one analyst remarked. "Retail panics, but big money quietly accumulates at better prices."
Community Sentiment
Comments from the community reflect a mix of skepticism and resolve:
"There's no reason not to be bullish on BTC" suggests a positive outlook.
On the flip side, another user warned, "We clearly about to enter a bear market lol."
An enthusiastic trader added, "Santa’s bringing lambos this year baby!"
Overall, sentiment is mixed, reflecting both caution and optimism about the potential market recovery. Existing cryptocurrency bellyaches, like the volatility seen post-Fed comments, have not deterred large wallets from diving deeper into Bitcoin.
Key Takeaways
🔹 Bitcoin dropped to $109k during Powell's speech, but bounced back to around $111k.
🔸 Total crypto market saw approximately $300 billion loss, yet big holders are still buying assets.
🔹 On-chain data shows over 45,000 BTC accumulated since last month's crash.
Investors are keeping a watchful eye as market dynamics shift with the Fed's policy changes and potential recovery signals. As we approach year-end, all eyes will be on upcoming earnings reports and geopolitical discussions.
Market Anticipations and Probabilities
With the current fluctuations and robust accumulation by major holders, there’s a strong chance Bitcoin could stabilize around $115,000 over the next month as investor sentiment adjusts to the Federal Reserve's actions. Experts estimate around a 65 percent probability for this upward movement, especially if tech earnings surpass expectations. Furthermore, there are signals that geopolitical talks can ease tension, potentially driving even more funds into riskier assets like cryptocurrencies. If the Fed indicates further easing down the line, the probability rises, suggesting a bullish trend may re-emerge in early 2026.
Historical Echoes of Financial Surges
This situation echoes the late 1980s U.S. stock market, where analysts predicted a downturn due to high interest rates, only for major investors to move in and accumulate stocks at lower prices. Like today, they saw value where mainstream fear prevailed. Just as these savvy investors shaped the narrative in those times, today's big crypto holders are quietly increasing their stakes while others panic. The lesson remains: sentiment can swing back, revealing unforeseen opportunities within chaos.