TL;DR
- Powell Signal: Fed chair hints at a possible September rate cut, pointing to shifting economic risks and the potential need to adjust policy if inflation and employment goals diverge.
- Crypto Rally: Bitcoin and Ethereum spike within minutes of the speech, with altcoins including Solana, XRP, BNB, and Cardano posting strong 24‑hour gains on renewed market optimism.
- Price Check: BTC $116,000, ETH $4,600, SOL $193, XRP $3, BNB $88, ADA $0.90, all seeing upward momentum in the wake of Powell’s comments.
Bitcoin and Ethereum surged on Friday after Federal Reserve Chair Jerome Powell signaled the possibility of an interest rate cut during his address at the annual Jackson Hole symposium. The remarks, delivered against a backdrop of persistent inflation concerns and tariff impacts, sparked immediate gains across Bitcoin, Ethereum and other major cryptocurrencies.
Powell Hints at Policy Shift
Powell stated that the Fed is prepared to adjust its policy stance if its dual mandate of full employment and stable prices comes into conflict. While cautioning that inflation from recent tariffs has yet to be fully reflected in economic data, he acknowledged that shifting risks could justify a rate cut as early as the September meeting. His comments marked a notable departure from the Fed’s recent steady-rate approach.
Market Reaction and Price Moves
Within 15 minutes of Powell’s speech, Bitcoin jumped from $112,000 to $114,700, while Ethereum climbed from $4,300 to $4,600. The rally extended to other major assets, with Solana, XRP, BNB, and Cardano also posting gains. Analysts noted that markets had been bracing for a more hawkish tone, and the hint of easing policy provided a relief rally for risk-on assets.
Brief Price Snapshot
As of the latest data, Bitcoin trades at around $116,000, up 3.35% in 24 hours. Ethereum is at $4,600, up 9.11%. Solana stands at $193, up 5.44%, while XRP is $3, up 4.70%. BNB is priced at $878, up 3.91%, and Cardano is at $0.90, up 5.04%. These moves reflect renewed optimism following Powell’s remarks.
Broader Context and Outlook
Powell’s speech comes after five consecutive Fed meetings with no rate changes. He emphasized that the central bank is not on a preset course, leaving room for flexibility in response to evolving economic conditions. While the prospect of a September cut has buoyed crypto markets, Powell warned against underestimating the lingering inflationary effects of tariffs. Investors now await the Fed’s next meeting for confirmation of a policy shift that could further influence digital asset momentum.
