Recent comments by Jerome Powell, chair of the Federal Reserve, significantly influenced the cryptocurrency market, triggering a sharp price increase.
Market Reaction to Powell's Speech
Following Powell's comments about the possibility of a rate cut in September, the cryptocurrency market reacted strongly. Bitcoin surged from $113,000 to $117,000, while Ethereum reached a new all-time high of $4,879, leading to liquidations of $245 million in short positions.
Discussion of Altcoin Season
Analyst VirtualBacon noted that there are signs of the start of an altcoin season, as Ethereum and other altcoins show significant growth. However, the Altcoin Season Index indicates that altcoins have not yet outperformed Bitcoin, sitting at a level of 61.
Coinbase Predictions for September
In a recent report, Coinbase highlighted that September could be the time for the start of altcoin season. Reasons include falling Bitcoin dominance, improved liquidity, and positive sentiments among investors.
In summary, the current rise in cryptocurrencies is driven not only by Powell's speech but also by changes in market conditions. Observing developments in September will be crucial.
