The Fed Chair’s remarks clearly acted as the catalyst for this volatility. The key triggers behind the hourly squeeze can be divided into four points:

First, the tariff shock. Powell explicitly stated that new tariffs could add between 0.5% and 1% to inflation. He described this as a one-off effect, but one that forces the Fed into a wait-and-see stance.
Second, developments in the Middle East continue to pressure gas and gasoline prices, complicating a stable return to the 2% inflation target. The target itself remains unchanged.
Powell confirmed that the Fed is effectively caught between supporting a weakening labor market and bringing inflation back to 2%.
Finally, according to the Fed Chair, they are closely monitoring the private credit market. So far, there are no signs of a systemic crisis, but there is no rush to draw conclusions. In financial terms, this implies continued uncertainty in the near term.
Despite Bitcoin showing gains in the moment, the dominance of long liquidations indicates that highly leveraged buyers were expecting a more dovish tone. Instead, Powell opted for a “wait and see” approach, outlined a range of risks and reaffirmed both the Fed’s markers and its inflation target.

In conclusion, Powell did not provide the market with grounds for an unchecked rally. The risk of stagflation remains. The current 125% liquidation impulse on BTC reflects a defensive market reaction to persistent uncertainty.
source: https://www.tradingview.com/news/u_today:681127371094b:0-bitcoin-records-125-liquidation-imbalance-following-powell-s-inflation-address/