In his annual speech at the Jackson Hole conference, Federal Reserve Chair Jerome Powell addressed key aspects of the U.S. economy, triggering significant moves in cryptocurrency markets.
Powell's Speech
Jerome Powell noted that inflationary pressures are rising due to tariff measures introduced under the previous administration. He expressed concern that the economic slowdown is 'much larger than assessed just a month ago.' Unemployment rose to 4.2% in July, which, although higher than recent months, remains near historically low levels. His most market-moving comments concerned the possibility of cutting interest rates as soon as September.
Bitcoin's Price Reaction
Bitcoin reacted sharply to Powell's remarks, climbing from below $112,000 to nearly $116,000 within an hour. This reaction was mirrored across the broader crypto market, with Ethereum also pushing above $4,500.
Market Liquidations Spike
The sudden swings in crypto prices triggered widespread liquidations in derivatives markets. According to market trackers, more than $230 million worth of positions were liquidated within a single hour as traders reacted to the volatility.
Powell's speech at Jackson Hole had a significant impact on the cryptocurrency market, leading to sharp price movements for Bitcoin and Ethereum, as well as massive liquidations in derivatives markets. The anticipation of lower interest rates emerged as a clear driver for traders.
