Bitcoin, Ethereum, XRP, BNB Rally After Powell Signals Rate Cuts
Cryptocurrency market surged after Fed Chair Jerome Powell hinted at possible rate cuts during the Jackson Hole Economic Symposium. Bitcoin (BTC) jumped 4% to $116,000, while Ethereum (ETH) led gains with a 13% rise to $4,740. Altcoins rallied: XRP climbed 5%, Solana (SOL) added 4%, and Binance Coin (BNB) soared 8% to hit a new resistance at $882. Powell’s comments on upcoming Fed rate cuts weakened the dollar and boosted crypto demand. Analysts at Julius Baer flagged a strong crypto-equity correlation and warned of heightened volatility around Fed policy updates. On social media, experts predicted a bullish Q4 but cautioned a “sell-the-news” reaction once rate cut certainty peaks. Signals of rate reductions as early as September further supported optimism. Traders are advised to monitor Fed communications and key support levels as the market tests new highs.
Bullish
Jerome Powell’s Jackson Hole remarks historically echo past Fed rate-cut signals that spurred crypto rallies in 2020 and 2021. A weaker dollar and lower borrowing costs tend to lift risk assets like Bitcoin and Ethereum, driving short-term momentum and encouraging broader altcoin gains. The clear uptick in BTC (+4%), ETH (+13%), XRP (+5%), SOL (+4%), and BNB (+8%) reflects renewed buying pressure ahead of expected September rate cuts. Analysts note that crypto-equity correlation remains strong, meaning that any dovish Fed communication could trigger further upside. While a “sell-the-news” pullback is possible once cuts are confirmed, the overall narrative points to a bullish Q4. In the long term, sustained lower rates and ongoing institutional interest could underpin higher price floors. Traders should watch Fed announcements, monitor support around recent highs, and position for continued upside while managing risk around potential profit-taking events.