Powell Speaks! With the Fed’s outlook unclear, why is Bitcoin trading sideways without falling?

Gate News reports that Federal Reserve Chair Jerome Powell delivered a temporary speech at Harvard University, with cautious language that lacked clear policy guidance, causing market sentiment to become more watchful. As a result, Bitcoin has remained around $67,400, with increased short-term volatility, but overall still demonstrating some resilience.

In his speech, Powell repeatedly emphasized that the current economic environment involves “a high level of uncertainty,” and admitted that policymakers have not yet fully understood the combined effects of multiple global and domestic pressures. He pointed out that monetary policy tools have limited impact on supply-side shocks, while geopolitical developments and changes in U.S. policy are continuing to disrupt the economic trajectory.

Regarding inflation, Powell stated that tariff factors could cause a temporary upward pressure of 0.5% to 1%, but also stressed that long-term inflation expectations remain stable. However, the Federal Reserve’s progress in bringing inflation back to its 2% target remains slow, further limiting policy space.

The labor market also shows some weakness. Powell mentioned that both labor supply and demand are declining, partly due to adjustments in immigration policies, indicating that the previously relatively stable employment structure is changing. Additionally, he again warned about the U.S. fiscal situation, noting that the pace of debt growth far exceeds economic expansion, and that an “unsustainable” path could pose long-term risks.

For the crypto market, these statements reinforce the narrative of Bitcoin as an anti-inflation hedge and a tool against fiat currency depreciation. Although there are no immediate expectations of rate cuts to support the market, and capital remains cautious, prices have not shown a significant downward trend, reflecting the market’s defensive stance amid uncertainty.

It is noteworthy that Powell explicitly stated that the Federal Reserve “has not discussed its next steps,” further dampening expectations of a policy shift. In an environment where macro signals are mixed and the path forward is unclear, both traditional markets and crypto assets are waiting for key catalysts, and Bitcoin’s range-bound consolidation may continue.