Powell Remarks and Fed Cut Rattle Bitcoin, Gold

The Federal Reserve cut rates 25 basis points to 3.75%–4%, but Chair Jerome Powell’s unexpectedly cautious, hawkish remarks rattled risk assets and sent Bitcoin down into the low-$107k–$108k range, wiping out last week’s rebound and extending October weakness. Traders cited macro headwinds — including a lingering U.S. government shutdown and mixed signals from the Trump–Xi meeting — alongside a resurgent U.S. dollar that has dented risk appetite and pressured both cryptocurrencies and precious metals. Gold has pulled back from its 2025 highs and is trading below $4,000 an ounce, prompting divergent forecasts ranging from a “mini-bust” to continued strength. Market views remain polarized: bullish investors point to ETF demand and price targets (e.g., $150k) for longer-term upside, while skeptics such as Peter Schiff reiterate that Bitcoin is a bubble. The interplay of policy uncertainty, data blackouts from the shutdown and persistent institutional flows is expected to keep volatility elevated into year-end.