BTC just below $43k, ETH at $2.3k as risk-off sentiment grows

Markets dipped during Powell’s Wednesday press conference but recovered Thursday to around pre-rate decision levels

article-image

Federal Reserve Chair Jerome Powell | "_DSC6402_pw"/Federal Reserve (CC license) modified by Blockworks

share

Cryptocurrencies and stocks posted a mild rebound Thursday after Federal Reserve Chair Jerome Powell signaled to markets that a rate hike is likely not coming until later this spring. 

Powell, during remarks given after the central bank announced it would be holding interest rates at their current level Wednesday, said an “unexpected weakening” in the labor market is one of the only instances that would result in a rate cut sooner than expected. 

Read more: Fed holds interest rates, Powell says sticky inflation would delay future cuts

Markets dipped during Powell’s press conference — the S&P 500 and Nasdaq Composite indexes lost 0.9% and 1%, respectively, within an hour — but recovered Thursday to around pre-rate decision levels. 

“This suggests trader conviction that rates will be coming down sharply, despite what Chair Powell said,” Noelle Acheson, author of the “Crypto is Macro Now” newsletter, said. 

Markets are still predicting a 40% chance the central bank will cut rates in March and a 58% chance the first decrease will come in May. 

“Given that Futures actually increased the odds of rate cuts this year despite Powell’s comments, and US equities sold off by over 1.5%, it seems clear that markets believe the Fed is about to make a policy mistake by keeping rates too high for too long,” Nicolas Colas, co-founder of DataTrek Research, said. 

Stocks also struggled Wednesday following earnings from New York Community Bancorp, which showed an unexpected loss and dividend cut. The news renewed skepticism that the banking system remains strong and pushed traders into risk-off territory. 

Read more: ‘Primary market’ for bitcoin ETFs largely hasn’t yet adopted such funds

The Federal Open Market Committee in their statement Wednesday also notably cut a line they have been touting since March 2023: “The US banking system is sound and resilient.” 

Bitcoin and ether similarly shifted lower Wednesday, likely also due to risk-off sentiment, but were on a modest recovery path Thursday. Bitcoin (BTC) was trading 0.2% higher and ether (ETH) gained 0.6% Thursday afternoon in New York. 

It is worth noting though, Acheson said, that bitcoin spiked during the banking crisis of 2023 as investors leaned into the “alternative” narrative.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Pipe’s testnet has delivered 60+ PB of data across ~290,000 Point of Presence (PoP) nodes

article-image

375ai will hold TGE at the end of the month, CEO Harry Dewhirst told Blockworks

article-image

Block’s subsidiary adds direct Bitcoin integration and AI-powered ordering tools for small businesses seeking streamlined transactions

by Blockworks /
article-image

The deal integrates Dinero’s staking suite into Plume’s real-world asset platform as it gains SEC transfer agent status

by Blockworks /
article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /