Guys, have you heard what Powell said lately? I’ve been following it closely, and I must tell you that Powell’s speech contains very interesting signals for those of us who follow the crypto market.

Let’s start with the general context. Recently, the Fed is facing a particular challenge: inflation was the number one enemy, but now the focus is shifting. Employment numbers have started to weaken, and this is more concerning than before. It’s an important change in narrative—from “fighting inflation at all costs” to “not harming the economy.” Do you understand the implication?

Now, the crucial point of Powell’s speech concerns the balance sheet reduction. For those who don’t know, it’s the process where the Fed withdraws liquidity from the system— they’ve continued doing this in recent years, making money scarcer and scarcer. The news? It might stop soon. This isn’t a technical detail; it’s huge. It means that the “liquidity withdrawal” that drained the markets is about to end. When the Fed stops removing money, cash starts circulating more freely again.

But there’s more. Powell’s words about “future data” and “non-predefined paths” are actually a subtle way of saying: we’re considering lowering interest rates. Those familiar with Fed language know how to read between the lines. Late October could be the moment. And when rates go down, the cost of money becomes low, funds seek higher yields, and guess where they look? Right at riskier markets like cryptocurrencies.

Let’s add the geopolitical factor. Powell mentioned tariffs and trade tensions as sources of inflationary pressure. In these moments of uncertainty, decentralized assets like Bitcoin attract attention. It’s the classic flight to alternative assets when the traditional system shows cracks.

In summary: Powell’s speech is clearly dovish, cautious, and mild. The Fed is signaling easing, not tightening. Liquidity is about to improve, balance sheet reduction will pause, and rates could fall. It’s the kind of scenario that historically favors risk assets.

In a nutshell? The water is returning to the markets. That recent cold spell we’ve felt might be only temporary. Spring in crypto could already be here.