Powell Sparks Bitcoin Rally to $116K, Triggers Liquidations
At the Jackson Hole Symposium, Fed Chair Jerome Powell signaled that policy “may warrant” adjustment, hinting at a potential September rate cut. Bitcoin price surged from around $112,000 to an intraday high near $117,416, while Ethereum price jumped over 8% to above $4,600. The crypto market cap rose 2.5% to about $3.95 trillion. The sudden Bitcoin price rally liquidated roughly $379 million in short positions—including $56.4 million in BTC and $193 million in ETH—and pushed total session liquidations above $585 million. The CME FedWatch tool now shows a 90% chance of a September rate cut. The sudden Bitcoin price rally also drove momentum across risk assets, with stocks climbing on renewed easing hopes. Analysts say short-term volatility may persist, but easing monetary policy could support a sustained crypto market rally.
Bullish
Powell’s dovish shift at Jackson Hole immediately drove Bitcoin price sharply higher, liquidating significant short positions and lifting broader risk assets. In the short term, this could increase volatility as traders react to rapid price swings and profit-taking. However, the strong move reflects growing market conviction that the Fed may cut rates soon—currently a 90% probability—providing a bullish backdrop for crypto assets. Over the medium to long term, sustained easing expectations could underpin further gains, reinforcing positive sentiment and potential upside in BTC and ETH.