Bull Run Alert: Bitcoin Surges Back Thanks to Powell’s Dovish Signals
- Why Did Bitcoin Suddenly Rebound From $111K?
- Is the September Rate Cut Already Priced In?
- Technical Signals Flash Green
- The "Bitcoin Hyper" Narrative Gains Traction
- Volatility Warning Lights Still Blinking
- Are We Early in a New Bull Cycle?
- FAQ: Your Bitcoin Bull Run Questions Answered
Bitcoin has staged a dramatic rebound from a six-week low of $111,658 to $116,000 after Federal Reserve Chair Jerome Powell hinted at a potential rate cut in September during the Jackson Hole symposium. This shift in tone ignited risk assets, with analysts like Daan crypto Trades and Scott Melker noting bullish technical divergences. The market now prices in a 75% chance of a Fed rate cut, fueling speculation of a renewed crypto bull run. However, volatility remains high as macro indicators loom. Meanwhile, the emerging "Bitcoin Hyper" narrative positions BTC as a global monetary asset, potentially outpacing gold in macroeconomic shocks.
Why Did Bitcoin Suddenly Rebound From $111K?
Like a phoenix rising from the ashes, bitcoin surged 4% in hours after Powell's speech - classic "buy the rumor" behavior. The Fed chair acknowledged weakening inflation and labor data, subtly preparing markets for policy easing. Traders pounced when BTC tested its 200-day MA at $112K, with the RSI flashing oversold at 28. "This wasn't just technicals," BTCC analyst Mark Chen told me. "The Fed basically greenlit risk-on mode." CoinMarketCap data shows derivatives open interest jumped $1.2 billion post-speech.
Source: TradingView
Is the September Rate Cut Already Priced In?
The CME FedWatch Tool now shows a 75% probability of a 25bps cut on September 18 - up from just 35% two weeks ago. Historically, such expectations create self-fulfilling prophecies in crypto. Remember 2019? When the Fed last pivoted dovish, BTC rallied 300% in 6 months. But here's the catch: the 10-year Treasury yield remains stubbornly high at 4.2%. "Markets might be getting ahead of themselves," warns veteran trader Peter Brandt in his latest analysis.
Technical Signals Flash Green
Three bullish confirmations emerged:
- Daily RSI divergence (price made lower low while RSI made higher low)
- Volume spike on breakout above $114,500 resistance
- BTC dominance rising despite altcoin rallies
Source: DepositPhotos
The "Bitcoin Hyper" Narrative Gains Traction
Move over, digital gold. A new thesis positions BTC as a "global monetary shock absorber" - reacting faster than traditional hedges. When Powell mentioned "balanced risks," Bitcoin jumped while gold yawned. This isn't 2021's "institutional adoption" story. It's about BTC becoming the ultimate central bank policy play. Crypto Twitter exploded with #BitcoinHyper tags after MicroStrategy added another 5,000 BTC to its treasury.
Volatility Warning Lights Still Blinking
Don't break out the champagne yet. The BTC 25-delta skew remains negative (-8%), signaling puts are still pricier than calls. And with August CPI data coming September 12, we could see violent swings. "This rally needs to hold $113K to be credible," cautions BTCC's head of research. Interestingly, the Deribit options market shows heavy put stacking at $110K for September expiry.
Are We Early in a New Bull Cycle?
The $111K low checks several boxes:
- 20% correction from ATH (typical in bull markets)
- Hash ribbons signaled miner capitulation
- Exchange reserves hit 5-year lows
FAQ: Your Bitcoin Bull Run Questions Answered
What triggered Bitcoin's sudden price jump?
Jerome Powell's Jackson Hole speech signaled potential September rate cuts, weakening the dollar and boosting risk assets. Technical factors like oversold RSI and key support levels amplified the move.
How reliable are Fed rate cut predictions for crypto?
Historically, anticipated Fed pivots have preceded major crypto rallies, but the correlation isn't perfect. The 2019 cuts came during a bear market, while 2021's tightening cycle saw BTC hit ATHs.
What's the "Bitcoin Hyper" narrative?
It's the idea that Bitcoin now reacts faster than Gold to macroeconomic shocks, evolving beyond just "digital gold" into a standalone monetary asset class.
Should investors expect continued volatility?
Absolutely. Key events like the September Fed meeting and CPI data could cause 10-15% swings. Options markets price in 45% annualized volatility.
What price levels are traders watching now?
Critical support at $113K, resistance at $120K (psych level) and $125K (2024 high). A close above $125K WOULD confirm bullish continuation.
