Fed Signals Cool the Crypto Surge: Bitcoin Hits a Wall at $85K

In the last 24 hours, Bitcoin rose 0.6% but remained range-bound near $84,000. The increased volatility follows a vague statement from Fed Chair Jerome Powell, whose remarks have shaken market stability and deepened investor uncertainty.

Liquidation volumes hit $235 million in the past day, with $125 million coming from longs. This reflects active trading behavior and a market still gripped by uncertainty.

• Powell spoke, markets shook — but the Fear and Greed Index didn’t flinch: still sitting at 30.
• BTC’s 63% dominance sends a clear message: the king still rules.
• As for altcoins? The Altseason Index has been flatlining at 15 for days, signaling a cold streak.

Bitcoin Struggles to Break Out as Fed Sentiment Dampens Market

Despite several rallies, Bitcoin finds itself locked between $83,000 and $85,000—a limbo zone reinforced by somber remarks from the head of the Federal Reserve. Each push upward falters at the ceiling, with market sentiment teetering under macroeconomic tension.

BTC is still hovering below the 200-day EMA, a technical indicator pointing to sustained bearish pressure.

Santiment’s latest insights show the market still believes in Bitcoin’s next leg up—possibly all the way to $90K.

But whether that happens depends on a few big factors:

1. what the Fed does next,
2. how U.S. tariffs evolve,
3. and how global players react to policy signals from the Trump camp.

Bitcoin ETF Party’s Over — For Now

Just days after inflows boosted optimism, institutional investors made an about-face, withdrawing $171.1 million from U.S. spot Bitcoin ETFs on April 16. Only BlackRock’s iShares Bitcoin Trust ETF (IBIT) stood its ground, attracting a solid $30.6 million in fresh capital.

Momentum reversed swiftly—yesterday’s $76.4 million net inflow has given way to renewed outflows, highlighting ongoing uncertainty around Bitcoin ETFs.

Powell’s Patience Reverberates Through the Markets

Jerome Powell just made it clear: the Fed isn’t racing to slash rates. Before pulling the trigger, he wants a clearer picture of how Trump’s proposed tariffs and policies could reshape the U.S. economy — a wait-and-see stance that’s already rippling through crypto and equities alike.

The Federal Reserve, Powell explained, will hold a neutral line until credible risks to economic stability appear.

Initial estimates, he noted, point to tariffs pushing inflation upward and dragging growth down — albeit temporarily. But the real red flag would be a dual rise in inflation and joblessness, which he called a potential tipping point.

Our tool only does one of those two things at the same time,

he said when questioned by journalists.

That’s the dilemma: the Federal Reserve must make a choice, since the required actions contradict each other:

• Combating inflation demands higher interest rates,
• But rising joblessness pushes for cuts.

Markets dipped in response to Powell’s comments, underscoring renewed investor anxiety over America’s economic trajectory.

Read on: Will There Be a Recession in 2025? Markets, Data, and Trump’s Tariffs

Macroeconomic data has taken center stage, and with the Federal Reserve guiding expectations, market sensitivity to every signal has grown acute.

Bitcoin now faces a technical test: hold the line at $83,000—or muster the strength to break through $85,000.