TLDR:

Powell hinted at ending balance sheet contraction, a historic trigger for an altseason since 2017.
Liquidity may soon return to markets as the Fed nears the end of its tightening phase, lifting crypto sentiment.
The Fed chair’s steady tone reassured investors that no further tightening is expected for now.
Analysts believe Powell’s remarks could mark the start of a fresh liquidity cycle favoring risk assets.

Jerome Powell’s latest comments have crypto traders lively. His tone was steady, but the message was clear. 

The Federal Reserve may be nearing the end of its tightening phase. That means liquidity could start creeping back into global markets. And when that happens, history says altcoins often lead the charge.

In a post shared by Bull Theory (@BullTheoryio), Powell’s remarks were described as “measured but quietly bullish.” 

The Fed chair avoided hawkish signals, instead suggesting that the current policy path remains steady. That kind of stability tends to calm investors and invite risk appetite back into the market.

Powell said the “outlook hasn’t changed much since September,” signaling no urgency to raise rates further. He also mentioned that the policy toolkit was “working very well,” indicating confidence in current measures. These comments hinted at a gradual shift toward easing conditions rather than tightening them again.

Liquidity Shift Could Boost Crypto Prices

The key takeaway came when Powell mentioned that the Fed “may be approaching the end of balance sheet contraction.” 

For crypto markets, that line mattered most. Ending quantitative tightening (QT) means the liquidity drain stops. Once that flow stabilizes, new money starts circulating again, often pushing asset prices higher.

Since 2017, every major altseason has followed a pause or reversal in the Fed’s balance sheet reduction. That pattern links liquidity expansion to sharp gains across Bitcoin, Ethereum, and mid-cap tokens. If this cycle follows the same path, the crypto market could be entering its next growth phase.

According to Bull Theory, liquidity typically returns first to Bitcoin, then spreads to Ethereum before reaching smaller tokens and meme coins. The shift doesn’t happen overnight, but the initial signal often starts with the Fed hinting that tightening is over. Powell’s tone fits that script perfectly.

For investors tracking liquidity flows, Powell’s latest speech may serve as the quiet confirmation they’ve been waiting for. 

Markets crave clarity, and the Fed just gave them some. That’s why crypto traders are starting to lean risk-on again, watching closely for the first signs of inflows.

Crypto Market Awaits Next Move

If Powell’s remarks hold true, the next few months could shape how capital rotates across digital assets. Bitcoin might absorb the first wave of returning liquidity, setting the stage for altcoins to follow. It’s not a guarantee, but history suggests it’s the setup for early rallies.

For now, markets are reading between the lines. The Fed didn’t announce a pivot, but it may have quietly prepared the ground for one. If balance sheet contraction truly ends soon, the crypto market could see fresh demand just as traders regain confidence.

The next altseason might not start with fireworks. It could start with a whisper from the Fed — and that whisper may have just happened.

The post Powell’s Quiet Shift Could Light the Fuse for the Next Altseason: Here’s How appeared first on Blockonomi.

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Filed under: Bitcoin - @ October 14, 2025 8:15 pm