Mr.Abrash

08/23 15:01

Bitcoin price charges to $116K as Fed's Powell hin

Bitcoin price charges to $116K as Fed's Powell hints at interest-rate cut




Bitcoin 
BTC
$114,886
 spiked to $116,000 on Friday as the US Federal Reserve hinted that it would cut interest rates.


Bitcoin price rebounds from 6-week lows on Fed
Data from Cointelegraph Markets Pro and TradingView followed volatile BTC price action as Fed Chair Jerome Powell delivered a policy speech.

Powell took to the stage at the annual Jackson Hole economic symposium — traditionally an opportunity to hint at upcoming policy moves.

The current situation with inflation and the labor market, he said, “may warrant adjusting” the Fed’s monetary policy stance.


Markets immediately reacted, with crypto and risk assets jumping while US dollar strength tumbled.


BTC/USD gained over 3%, helping lift the pair from local lows of $111,658 — its lowest level since July 10.

“Good bounce from the range low sweep on the back of a dovish Powell. Going to remain volatile for the rest of the day,” popular trader Daan Crypto Trades wrote in a reaction on X.


Commentator TheKingfisher noted that the price had taken bid liquidity during the trip to the lows.


“Bitcoin is showing bullish divergence (again) with oversold RSI on the 4-hour... and 6-hour. Maybe the 12-hour. Maybe the daily. All at key $112K support,” trader, analyst and podcast host Scott Melker, known as the “Wolf of All Streets,” continued just before Powell began speaking. 

“Anything can happen, but always interesting when very strong signals appear in alignment with news events.”


Powell “setting the stage” for new rate cut
Considering the implications of Powell’s choice of words, market participants were skewed in favor of the Fed cutting interest rates at its upcoming meeting in September.



“It appears Fed Chair Powell is setting the stage for a September rate cut,” trading resource The Kobeissi Letter summarized.

Kobeissi suggested that the Fed would cut by 25 basis points, a view echoed by market expectations from CME Group’s FedWatch Tool.


As Cointelegraph reported, uncertainty had previously reigned over the September outcome as Powell stuck by his hawkish tone amid rising inflationary cues and uncertainty over US trade tariffs.

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