[Bitcoin Now] Cryptocurrencies Surge on Rate Cut Hopes... Ethereum Up 14%

Bitcoin Recovers to $116,000 Range
"Powell Clearly Signals Possibility of September Rate Cut"

As Jerome Powell, Chair of the US Federal Reserve (Fed), left the possibility open for a rate cut in September on August 22 (local time), cryptocurrencies have surged sharply across the board.

According to the US cryptocurrency exchange Coinbase, at 8:18 p.m. Eastern Time (5:18 p.m. Pacific Time) on that day, the price of one Bitcoin was trading at $116,808, up 3.92% from 24 hours earlier. The price even climbed to the $117,300 range at one point, showing strong momentum.

Bitcoin had seen a significant drop in price after the US Producer Price Index for July, released on August 14, far exceeded market expectations, which dampened hopes for a rate cut in September. After reaching an all-time high of around $124,500, it fell by about 10% from its peak over the course of a week. Ahead of Powell's remarks at the Federal Reserve's Jackson Hole Economic Policy Symposium in Jackson Hole, Wyoming, the price had dropped below the $112,000 level.

However, immediately after Powell's speech, the price of Bitcoin rebounded sharply to the $115,000 range. It continued to rise, entering the $116,000 range.

Buoyed by this, Ethereum, the second-largest cryptocurrency by market capitalization, posted a double-digit gain, soaring 14.02% to $4,812.71. At one point, the price rose to $4,885.61, coming just short of its all-time high of $4,890 recorded in November 2021 on Coinbase. However, Bloomberg reported that Ethereum "rose to $4,866.73, surpassing its previous record high of $4,866.40 set in November 2021."

Powell stated, "Unemployment and other labor market indicators are stable," adding, "This allows us to proceed cautiously as we consider a shift in policy stance." He also noted, "With policy in restrictive territory, the balance between our baseline outlook and evolving risks may prompt us to adjust our policy stance."

CoinDesk, a cryptocurrency-focused media outlet, commented, "Bitcoin, which had faced downward pressure over the past week, surged significantly following Powell's dovish remarks," adding, "Contrary to the hawkish tone the market had expected, Powell clearly signaled the possibility of a rate cut in September."

XRP (Ripple), the third-largest cryptocurrency by market capitalization, also rose 7.44% to recover the $3 mark ($3.06), while Solana and Dogecoin surged 11.26% and 11.42% respectively, trading at $199.72 and $0.24 each.