Bitcoin Swings Wildly as Fed's Powell Straddles Labor Market and Inflation Issues

Market Reaction - Bitcoin (BTC) spiked above $94,000 before retreating to around $92,000 after Fed Chair Jerome Powell's comments on the labor market and inflation [1][2] - Ether (ETH) showed relative strength, rising about 1.1% to wobble above $3,300 during the same period [2] Federal Reserve Actions - The Federal Reserve cut the fed funds rate by 25 basis points and announced plans to purchase short-term Treasury bills, targeting around $40 billion in purchases over the next month [4] - Powell indicated that the Fed's policy is now within a neutral range and emphasized the need to wait for more data before making further adjustments [3][6] Analyst Insights - Analysts noted that the Fed's rate cut does not signal the start of an aggressive easing cycle, with future moves dependent on inflation and labor market data [6] - The communication from policymakers stressed caution amid signs of slowing economic momentum [6]