The crypto market has shown renewed optimism following recent comments from U.S. Federal Reserve Chair Jerome Powell regarding a potential interest rate cut, positively impacting cryptocurrency prices.
Fear & Greed Index Climbs Back to Greed
According to the Crypto Fear & Greed Index, market sentiment climbed to a score of 60 on Saturday, up from 50 just a day earlier. This jump reflects how quickly optimism can return to crypto when the Federal Reserve signals looser monetary policy.
Mixed Views Inside the Fed
Not everyone at the Fed is convinced yet. St. Louis Fed President Alberto Musalem told Reuters he still needs more time before supporting a rate cut. Even so, many in the crypto space were already preparing for a rally.
Bitcoin and Ethereum Lead the Rally
Following the news, Bitcoin price reacted quickly, surging 5% to $117,000 and wiping out nearly $400 million in short positions. Ethereum showed even greater strength, climbing 2% in just 24 hours to retest its 2021 all-time high near $4,870.
With just weeks to go until the Fed’s September meeting, crypto traders will be watching every signal closely, knowing the next decision could define the market’s direction for the rest of the year.
