US Federal Reserve Chair Jerome Powell gave the strongest signal for Fed rate cuts in his speech at Jackson Hole, causing positive sentiment in the stock and crypto markets.
Fed Rate Cuts Signal
During the Jackson Hole Symposium in Wyoming, US Federal Reserve Chair Jerome Powell said the central bank is looking at interest rate cuts ahead. While he didn’t provide exact indications on the timing or extent of rate cuts, Powell confirmed that it’s time for a monetary policy pivot amid slowing inflation and weakening of the labor market in the United States. ‘We do not seek or welcome further cooling in labor market conditions,’ Powell said in prepared remarks for a speech at the central bank’s annual gathering in Grand Teton National Park. ‘The time has come for policy to adjust.’ As expected, the Fed Chair stated that the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.
Bitcoin and Ethereum Performance
Following Powell's statements, Bitcoin and Ethereum saw sharp price increases. Bitcoin hit an intraday high of $62,320 after dovish comments signaled potential rate cuts starting in September. Ethereum reached $2700, although the price later dropped to $2680. Bitcoin experienced volatility as traders adjusted positions. BTC price rose 2% in an hour and nearly 3% in the past 24 hours, currently trading at $61,700. Trading volume also increased in the last hour, indicating a rise in trader interest. ETH price climbed over 2% in the past 24 hours, currently trading at $2,666. The 24-hour low and high are 2,592 and 2,700, respectively. Furthermore, trading volume saw a slight increase.
Conclusion
Jerome Powell's statement at the Jackson Hole symposium regarding potential interest rate cuts led to positive sentiment in the crypto market and a rise in Bitcoin and Ethereum prices. It is expected that further actions by the Fed will depend on incoming economic data and the balance of risks.
Jerome Powell’s statement at the Jackson Hole symposium regarding potential interest rate cuts caused positive sentiment in the crypto market, leading to a rise in Bitcoin and Ethereum prices.
Comments