What to know:

Bitcoin and cryptos finished sizably lower but off their worst levels as Federal Reserve Chair Jerome Powell's slightly dovish comments provided relief for risk assets.
Bitfarms (BITF), Cleanspark (CLSK), Iren (IREN), Marathon Digital (MARA) and TeraWulf (WULF) surged over 10% as investors continue to bid up BTC miners as AI infrastructure plays.
Friday's leverage drawdown creates a "constructive setup," K33 research head Vetle Lunde said.
Crypto markets posted big declines on Tuesday, but signs of relief from the Federal Reserve helped prices bounce off their worst levels. A late day Truth Social post from President Trump reminded bulls that he has the power to reverse rising asset prices at any time.

Bitcoin traded as low as $109,800 during the early U.S. session Tuesday after tumbling from nearly the $116,000 level overnight. It's since bounced to $112,600, down 2.8% over the past 24 hours.. Ether declined 4%, while BNB, XRP and Dogecoin dropped between 4% and 6% during the same period. The broad-market CoinDesk 20 Index fell 3.2%.

Prices found some footing after Fed Chair Jerome Powell said the central bank is nearing the end of its quantitative tightening (QT) cycle — the process of shrinking its bond holdings. He also noted that the labor market is cooling and rising risks to employment, coupled with some signs of tightening in money markets. The comments add up to another likely rate cut later this month.

U.S. equity indexes responded sharply, with the Nasdaq and S&P 500 reversing early losses to briefly turn green before closing with 0.75% loss and 0.15% loss, respectively.

At least a portion of the day's bounce in both crypto and stocks was erased in a few minutes late in the session after President Trump took to Truth Social to suggest blocking cooking oil imports from China unless that country steps up its buying of soybeans.

Miners continue to be bid

Crypto mining stocks once again led digital asset equities as investors continue to bet that booming computing power demand from artificial intelligence (AI) will benefit these firms. Bitfarms (BITF), Cleanspark (CLSK), Iren (IREN), Marathon Digital (MARA) and TeraWulf (WULF) each surged over 10% on the day.