ETH Surges to Record High as BTC Consolidates Post-Powell
Bitcoin dropped almost 10% during the Jackson Hole symposium as investors de-risked on hotter inflation data and weaker ETF flows. After Federal Reserve Chair Jerome Powell’s dovish remarks, a short squeeze lifted digital assets: ETH surged to an all-time high of $4,958.70, while BTC entered a consolidation phase instead of signaling structural weakness. US spot crypto ETFs registered significant outflows—$1.18 billion from Bitcoin products and $197 million from Ethereum in a single day—but corporate treasury accumulation has absorbed much of the supply. With global liquidity rising and ETH balances in corporate treasuries surpassing $10 billion, the long-term outlook remains constructive. BTC is expected to trade range-bound in the near term, while ETH drives capital rotation and altcoins await broader institutional vehicles. On the macro front, Powell’s cautious stance suggested a possible September rate cut but underscored ongoing inflation risks. Strong US manufacturing and services data coexist with persistent price pressures. Crypto regulatory and adoption updates include Thailand’s crypto-to-baht pilot, SharpLink Gaming’s increase to over 740,000 ETH, and the CFTC’s expanded ‘Crypto Sprint’ with the SEC.
Bullish
The news is bullish because ETH’s record-high surge demonstrates strong underlying demand and institutional accumulation, offsetting recent ETF outflows. BTC consolidation around key levels indicates healthy market digestion rather than a reversal, reflecting a balance between profit-taking and long-term buy support. Fed Chair Powell’s dovish tone reduced rate-hike fears, easing financial conditions and prompting cross-asset rallies. Historical parallels—such as the post-2019 Fed pivot—saw similar relief-driven rallies in risk assets, including cryptocurrencies.
In the short term, traders may target ETH’s next resistance near $5,100, while BTC could oscillate within $25,000–$30,000 before broader directional moves. Continued treasury accumulation and rising corporate ETH holdings support further upside for altcoins. Over the long term, expanded US regulatory efforts—like the CFTC’s ‘Crypto Sprint’ and Thailand’s crypto-to-baht pilot—enhance market infrastructure and institutional confidence. These developments underpin a bullish framework, suggesting that digital assets can attract renewed capital inflows as macro uncertainties ease.