Fed Dovish Pivot and Bitcoin Reserve Drive Crypto Rally
Traders saw a sharp crypto rally after Fed Chair Jerome Powell signalled a September rate cut at Jackson Hole. Within minutes, Bitcoin (BTC) jumped from $111,658 to above $116,000, helping total market cap rebound over $4 trillion. Ethereum (ETH) led the top-ten assets with a 13.1% gain, while Chainlink (LINK) rose 10.4%. Altcoin names like Solana (SOL) and Binance Coin (BNB) also posted double-digit returns as risk appetite returned.
The dovish Fed shift softened the US dollar and encouraged flows into risk assets, fueling this crypto rally. Meanwhile, government reserve proposals for Bitcoin—driven by bills in the Philippines and US policy talks—reinforced Bitcoin’s institutional appeal. Market observers note that rising altcoin season momentum could extend if macro cues remain supportive and Bitcoin reserve narratives gain traction.
Bullish
Jerome Powell’s dovish turn at Jackson Hole echoes past Fed rate-cut signals that have triggered risk-on rallies in both equity and crypto markets. The swift rebound of Bitcoin above $116,000 and recovery of total market cap over $4 trillion reflect renewed investor confidence in digital assets. Bitcoin reserve proposals by sovereign entities add a fundamental layer, reinforcing institutional demand similar to when major firms announced Bitcoin treasury buys in 2021. Altcoin strength, led by ETH and LINK, underscores a broad market rotation into higher-beta assets. Overall, this combination of monetary easing expectations and institutional adoption narratives suggests a bullish outlook in both the short-term rally and potential sustained uptrend, provided macro conditions remain supportive.