It’s barely a ripple in the charts compared to the bullish surge that followed Donald Trump’s election win, but crypto markets took a modest hit late Thursday after a speech from Federal Reserve Chair Jerome Powell.

Source: BNC Bitcoin Liquid Index

“The economy isn’t signaling any urgency for rate cuts,” Powell stated during a Dallas conference. “Current economic strength allows us to proceed cautiously in our decision-making.”

The market reaction was swift but contained. Bitcoin (BTC) slipped 1.5% to $88,300 within minutes of Powell’s comments, eventually dipping further to $88,000, marking a 3.2% drop over the past 24 hours. 

The Fed’s hawkish tone sent ripples beyond crypto. The CME FedWatch tool now places the odds of a December rate cut at 62%, down from 83% just a day prior. Traditional markets weren’t spared either, with the Nasdaq shedding 0.75% before the bell, retreating from recent highs.

Despite the dip, crypto remains in a strong uptrend. Bitcoin’s still up 15% for the week, while altcoins like Cardano (ADA), XRP, NEAR, and Stellar (XLM) boast gains of 20% to 40%. The question now is whether this is a temporary pause or the first sign of fading bullish momentum.

Crypto holders had other reasons to be thankful, however, with it looking increasingly likely that SEC Chairman Gary Gensler is preparing to step down. 18 U.S. states have filed to sue the SEC and its commissioners, accusing them of unconstitutional overreach and unfair persecution of the crypto industry under the leadership of agency chief Gary Gensler.

The lawsuit, signed by 18 Republican Attorneys General, details how the agency has committed “gross government overreach” with its regulation by enforcement crusade against the $3 trillion industry, resulting in an infringement upon states’ rights to regulate their economies.