Markets Rocket as Powell Takes Dovish Turn at Key Economic Symposium
Fed Chair's surprisingly gentle stance sends risk assets soaring—crypto leads the charge with double-digit gains.
The Powell Pivot
Jerome Powell's symposium speech ditched hawkish rhetoric for measured tones. Traders immediately interpreted the shift as bullish for speculative assets. Bitcoin ripped past resistance levels while altcoins exploded.
Crypto Outperforms Traditional Markets
Digital assets massively outperformed traditional indices within hours of Powell's remarks. The crypto market cap added over $100 billion—classic "bad news is good news" logic where slower economic growth means prolonged liquidity support.
Institutional FOMO Returns
Hedge funds and family offices piled into crypto derivatives within minutes of the speech. Options volume hit quarterly highs as traders positioned for continued accommodative policy. Even gold bugs conceded digital gold's superior momentum play.
The irony? Powell tries to calm traditional markets and accidentally fuels the very speculative frenzy regulators keep warning about. Sometimes the easiest trade is betting on Wall Street misreading the Fed's tea leaves—again.
Following the speech by Jerome Powell, President of the Federal Reserve, at the Jackson Hole Economic Symposium, a significant surge was observed in the cryptocurrency market. Powell’s softer-than-expected approach fostered expectations of new peaks, especially in Bitcoin (BTC)
$115,823, Ethereum (ETH)
$4,731, and some altcoins. Market analysts suggest that this development could unlock a new era for crypto assets.
Impact of Powell’s Speech
In his speech, Powell highlighted increasing risks in the employment market and hinted at potential interest rate cuts. He reminded that the Fed has maintained its policy interest rate at 4.25% for eight months and emphasized the need to possibly adjust this stance considering the current rigid fiscal policy. Powell also noted that the tariffs from the Donald TRUMP era might only have a short-term effect on inflation.
Following these statements from Powell, both cryptocurrencies and stocks observed an increase. The probability of a Fed interest rate cut in September ROSE to 90%. Analysts generally believe that this positive atmosphere will continue in the short term.
Rising Expectations for BTC and ETH
Analysts at Monarq Asset Management have predicted that ethereum might soon surpass $5,000. Sam Gaer, the Investment Director of the company’s Guidance Fund, remarked on the positive market structure and the potential for new records in Bitcoin and Ethereum.
Ethereum’s token, Ether, has gained approximately 10% in the last 24 hours. Ether surpassed the $4,800 mark to set a new record and was trading around $4,700 at the time of this report. Bitcoin, after reaching a peak of $117,400, was trading around $115,600.
Spencer Yang, the director at BlockSpaceForce, stated that there could be new peaks by the end of the year, following the expected interest rate cut in September. Yang anticipates BTC, ETH, BNB, SOL, and LINK to become prominent.
ETF Flows and Potential Risks
Steve Lee, co-founder of Neoclassic Capital, mentioned that Powell’s new approach could be positive for cryptocurrencies in the short term but emphasized that BTC and ETH spot ETF flows will dictate price directions. According to Lee, developments in ETF markets in the coming week will be crucial for predicting the continuation of the uptrend.
Market experts indicate the existence of various risks despite the rally. These risks include institutional investors’ growing interest in crypto assets and the uncertainties arising from fluctuations in stock markets. Steve Lee warned of signs of a potential “bubble” due to declining quality in digital asset funds.
In recent years, public companies have accelerated their accumulation of BTC. Statistics show that over 100 publicly traded companies hold a total of 984,971 BTC. Gaer warned that overvaluation and macro-level or geopolitical developments could cause market volatility.
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