Federal Reserve Chair Jerome Powell recently hinted at a possible shift to an easier monetary policy, suggesting that the central bank might soon lower interest rates. This statement, made at the Jackson Hole Economic Policy Symposium, has increased market expectations for a rate cut as early as the Fed’s September meeting.
The news had an immediate and positive effect on risk assets, especially cryptocurrencies. Following Powell’s speech, Bitcoin surged to a new record of $116,600, and Ethereum climbed almost 9%, nearing its all-time high. Other major cryptocurrencies, including Solana, also saw significant gains, pushing the total value of the digital asset market to nearly $4 trillion.
While Powell noted that inflation is still a concern and the full effect of tariffs on Chinese goods is yet to be seen, his remarks led traders to increase their bets on a rate cut this year. This expectation of looser policy also positively impacted stock markets, with crypto-related stocks and exchange-traded funds experiencing gains and inflows. Analysts believe a confirmed rate cut would likely further boost the ongoing recovery in digital asset prices.
August 2025, Cryptoniteuae
