Earlier today, Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts during his speech at the Jackson Hole Symposium, causing a rise in financial markets, particularly in cryptocurrencies like Bitcoin and Ethereum.
According to the speech, the central bank is considering adjusting its policies as inflation slows and the labour market weakens.
In his remarks, Powell projected that the Fed is getting closer to lowering rates, although he didn’t provide specific details about when this might happen. “The time has come for policy to adjust,” Powell said, indicating a shift in the Fed’s approach due to the current economic situation.
Following these remarks, Bitcoin’s price surged to a high of $63,591, a 5.51% increase over the last 24 hours. Similarly, Ethereum’s price also surged to $2750.38 according to CoinMarketCap.
Additionally, the CME FedWatch tool now shows a 63.5% chance of a 25 basis points rate cut in September, slightly down from 76% the previous day. Even so, many market watchers expect the Fed to cut rates by up to 100 basis points before the end of the year.
As a result, U.S. Treasury yields dropped, and the dollar weakened to its lowest level in 14 months, both of which typically boost Bitcoin’s value.
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