After Jerome Powell's speech at the Jackson Hole Symposium, the cryptocurrency market experienced a notable surge attributed to his gentle tone and forecasts of potential rate cuts.
Key Points of Powell's Address
In his address, Powell highlighted potential risks in the employment landscape and suggested possible future interest rate cuts. He noted that the Fed's policy interest rate has been unchanged at 4.25% for the past eight months, indicating that adjustments may be necessary in light of current economic conditions. Powell also suggested that tariffs from the Trump administration might only have short-lived impacts on inflation.
Outlook for BTC and ETH
Following Powell's remarks, there was a notable uptick in cryptocurrencies and stocks, especially given the high probability of a Fed rate cut in September. Analysts are optimistic that Ethereum may soon surpass the $5,000 mark. According to Monarq Asset Management, Ether rose by about 10% in a day, reaching a new high above $4,800. Bitcoin climbed to $117,400 before settling around $115,600.
ETF Trends and Risks
Steve Lee, co-founder of Neoclassic Capital, remarked that Powell's stance is favorable for cryptocurrencies in the near term, but the trajectory of BTC and ETH spot ETFs will critically influence price movements. He emphasized that ETF market developments in the coming week will be decisive in sustaining the upward trend. Despite the rally, risks persist, including rising institutional interest in cryptocurrencies and uncertainties from stock market volatility.
Jerome Powell's speech had a notable impact on the cryptocurrency market, fueling growth in Bitcoin and Ethereum. However, various factors, including risks in the ETF markets and possible shifts in monetary policy, remain in question.
