Jerome Powell’s Response Sparks Bitcoin Volatility Amid Retail Investor Losses
Bitcoin experienced increased volatility after Jerome Powell's unusual public statement regarding a criminal investigation into his actions as Federal Reserve Chair. This political development caused Bitcoin to drop from $92,500 to nearly $90,500, disrupting its consolidation phase above the $90,000 level.
- Powell's response marks a shift from his previous stance of not engaging with criticism from President Trump.
- The market is assessing the implications of macro policy and political pressure on Bitcoin's price direction.
Retail Fear Persists Amid Short-Term Volatility
CryptoQuant analysis reveals retail investors' fear of short-term volatility, despite Bitcoin maintaining its upward trend. The Short-Term Holder SOPR (STH SOPR) indicator shows short-term investors realizing losses even as prices rise.
- Retail sentiment has worsened, with STH SOPR dropping to around 0.98, indicating selling at a loss.
- This divergence often reflects buying opportunities rather than weakness in Bitcoin's structure.
Bitcoin Consolidates Below Key Resistance
Bitcoin is currently consolidating below key resistance levels following a correction from October highs near $120,000. It rebounded toward the $90,000–$94,000 range, which has become a short-term equilibrium zone.
- The 50-week moving average acts as dynamic resistance around the mid-$90,000 area.
- The broader macro trend remains intact, supported by the upward-sloping 100-week moving average.
- Volume compression during this phase suggests potential for future volatility expansion.
If Bitcoin fails to reclaim the $94,000 resistance, further consolidation may occur before a sustainable trend resumes.