Ethereum and Bitcoin Surge as Powell Hints at September Rate Cut
Jerome Powell just handed crypto bulls exactly what they wanted—and the market responded instantly.
Ethereum and Bitcoin ripped higher moments after the Fed Chair signaled potential interest rate cuts ahead. The mere suggestion of looser monetary policy sent digital assets soaring as traders anticipated renewed liquidity flows into risk assets.
Timing Is Everything
Powell's comments couldn't have come at a more crucial moment. With traditional finance still wobbling from recent banking stress, crypto's rebound showcases its growing role as a liquidity barometer. The Fed's pivot suggests they're finally acknowledging what crypto traders knew months ago—the economy needs support.
Market Mechanics in Motion
Rate cuts typically weaken the dollar, making alternative stores of value more attractive. Bitcoin's fixed supply and Ethereum's staking yields suddenly look far more compelling than negative-real-yield bonds. Institutional money already waiting on the sidelines now has the green light to deploy.
Of course, Wall Street will claim they saw this coming all along—right after they finish revising their forecasts.
This isn't just a technical bounce. It's validation that macro still drives crypto—and that sometimes, the most powerful catalyst wears a suit and talks about basis points.
