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Bitcoin gets a price boost from Fed chair Jerome Powell

Bitcoin By
Bitcoin price action weakens amid surprising US employment data.
Bitcoin price action weakens amid surprising US employment data.

The following are key points.

  • Bitcoin has returned to $116,000, after rising over 2% within minutes. “dovish” Jerome Powell, Fed chairperson’s comments

  • Powell’s Jackson Hole address cemented odds for a cut in interest rates next month.

  • The US Dollar fell, and risk assets such as bitcoin and cryptocurrency rose.

BitcoinBTCAs the US Federal Reserve signaled that interest rates would be cut, the price of a ) soared to $116,000 last Friday.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Fed reports bitcoin price rebounding from six-week lows

Data from Cointelegraph Markets Pro The following are some examples of how to get started: TradingView Watched BTC’s volatile price movement as Fed chair Jerome Powell made a policy address.

Powell took to the stage at the annual Jackson Hole economic symposium — traditionally an opportunity to hint at upcoming policy moves.

It was his view that the situation of inflation and employment on the market is currently very bad. “may warrant adjusting” The Fed’s position on monetary policy.

Crypto and risk assets surged, while US Dollar strength fell.

BTC/USD gained over 3%, helping lift the pair from local lows of $111,658 — its lowest level since July 10.

“Good bounce from the range low sweep on the back of a dovish Powell. Going to remain volatile for the rest of the day,” popular trader Daan Crypto Trades wrote Reaction to X

BTC/USD four-hour chart. Source: Daan Crypto Trades/X

TheKingfisher commented that price liquidity was taken away during the decline.

“Bitcoin is showing bullish divergence (again) with oversold RSI on the 4-hour… and 6-hour. Maybe the 12-hour. Maybe the daily. All at key $112K support,” Scott Melker (also known as The Trader, Scott Melker the Analyst, and Scott Melker the Podcaster) is an analyst, trader and podcast host. “Wolf of All Streets,” continued Just before Powell begins speaking. 

“Anything can happen, but always interesting when very strong signals appear in alignment with news events.”

BTC/USD 4-hour chart with RSI. Source: Scott Melker/X

Powell “setting the stage” New rate cuts

The market was skewed towards the Fed lowering interest rates in its September meeting.

Related: Bitcoin won’t go below $100K ‘this cycle’ as $145K target remains: Analyst

“It appears Fed Chair Powell is setting the stage for a September rate cut,” Trading resource The Kobeissi Letter summarized.

Kobeissi said that the Fed will cut rates by 25 basis point, which is backed up by CME Group’s market expectation. FedWatch Tool.

Fed Target Rate Probabilities for the September FOMC Meeting (screenshot) Source: CME Group FedWatch Tool

You can also read about the advantages of using Cointelegraph reportedPowell’s hawkish tone was a constant in the face of rising inflationary signals and uncertainties over US tariffs.

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.