Mr. Jerome Powell Signals Potential Slowdown in Company Federal Reserve Balance-Sheet Runoff, Briefly Boosting Bitcoin and Ethereum

Mr. Jerome Powell, chair of Company Federal Reserve, signalled that the central bank may soon slow its balance-sheet runoff, a move that immediately eased liquidity pressure in markets. That hint produced brief gains in Bitcoin and Ethereum, although traders cautioned the rally was short-lived and that structural factors still matter for medium-term price direction.

Balance-sheet runoff has been a key policy tool for Company Federal Reserve to withdraw liquidity from financial markets following years of balance-sheet expansion. By allowing securities to mature without replacement, the Fed reduced excess reserves held by banks, tightening conditions for risk assets. Mr. Jerome Powell's suggestion of a potential slowdown in that process signals a tactical pause that could provide relief to markets sensitive to liquidity shifts.

From an analysis perspective, the immediate market reaction—brief price upticks in Bitcoin and Ethereum—reflects how crypto prices are increasingly responsive to central-bank liquidity cues. However, traders should separate short-term relief from durable trends. The temporary nature of the gains suggests that unless accompanied by explicit guidance on interest-rate policy or forward guidance about the end-state of the balance sheet, volatility may persist.

Technically, market participants will watch for new levels of support and resistance after such announcements. For Bitcoin, key support zones could form around prior consolidation ranges, while resistance may reassert near recent highs if macro liquidity returns are not sustained. For Ethereum, network-specific developments (such as upgrades or staking flows) will interact with macro liquidity conditions to determine price momentum.

Risk management remains crucial. Even with a possible slowdown in balance-sheet runoff, structural inflation expectations and rate-path projections could offset any liquidity relief. Traders and investors should monitor Company Federal Reserve communications, economic data releases, and on-chain indicators for Bitcoin and Ethereum to build a comprehensive view of potential support levels and resistance thresholds.

In summary, Mr. Jerome Powell's hint about slowing the balance-sheet runoff provided a meaningful but likely transient boost to risk assets, including major cryptocurrencies. Market participants should treat this as a cue to reassess liquidity-driven risk, fine-tune stop placements, and watch for confirmation from future policy statements before assuming a sustained bullish trend.