Cryptocurrency markets rose sharply on Friday following comments from Federal Reserve Chair Jerome Powell suggesting that interest rate cuts could be considered as soon as September. Bitcoin climbed over 2.5%, crossing the $116,000 mark.
Ethereum posted an even stronger move, gaining 9% and rising from just over $4,200 to above $4,600. That puts ETH back to levels seen before last week’s drop.
Other major cryptocurrencies also moved higher. Solana and XRP rose around 4%, while BNB added 2.5% and is now less than $10 away from its all-time high.
Powell Speech Shifts Market Expectations
The price movements followed Powell’s appearance at the Jackson Hole Economic Symposium, where he said the current outlook “may warrant adjusting” the Federal Reserve’s policy stance.
Markets took that as a signal that rate cuts are now more likely, particularly if economic conditions continue to weaken. Following the speech, the odds of a September rate cut jumped to over 90%, according to CME FedWatch data. U.S. equities also rose, and Treasury yields dropped.
While Powell emphasized that inflation risks remain, he also acknowledged signs of a slowdown in hiring and labor force growth, noting increased downside risks to employment.
Market Sentiment Improves
The broader market response suggests a shift in investor sentiment. The Fed’s previous tone was more cautious about easing, but Powell’s latest remarks opened the door to policy adjustments if economic risks continue to build.
Traders are now focused on upcoming labor and inflation data to assess whether the Fed will act at its next meeting. If Bitcoin remains above $115,000 and Ethereum stays near or above $4,600, it could signal a more sustained move.
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