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Bitcoin gets a price boost from Fed chair Jerome Powell

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Truth Social Bitcoin And Ether ETF Filing Acknowledged By SEC
Truth Social Bitcoin And Ether ETF Filing Acknowledged By SEC

The following are key points.

  • Bitcoin is back to $116,000, after it gained over 2% within minutes. “dovish” Jerome Powell, Fed chairperson’s comments

  • Powell’s Jackson Hole Speech cemented the chances of a rate cut in next month.

  • The US dollar fell immediately as the strength of risk assets, such as crypto and bitcoins, rose.

BitcoinBTCThe US Federal Reserve indicated that they would be cutting interest rates.

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

Fed reports bitcoin price rebounding from six-week lows

The Data of Cointelegraph Markets Pro You can also find out more about the following: TradingView Followed the volatile BTC prices as Fed Chairman Jerome Powell gave a speech.

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

The present situation of inflation and the labour market is what he spoke of. “may warrant adjusting” What is the Fed’s current stance on monetary policies?

The markets immediately responded, as crypto assets and other risky assets soared while the US dollar’s strength plummeted.

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 In a response on 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 is a trader, podcaster and analyst. “Wolf of All Streets,” continued Powell spoke just before he began. 

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

BTC/USD chart for four hours with RSI. Source: Scott Melker/X

Powell “setting the stage” New rate cuts

The market was swayed by Powell’s words to expect the Fed to cut 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,” The Kobeissi Letter: A trading resource summarized.

Kobeissi predicted that the Fed’s rate cut would be 25 basis points. This view was echoed on CME Group’s market outlook. FedWatch Tool.

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

The following are some of the ways to get in touch with us. Cointelegraph reportedPowell’s hawkish tone was a constant in the face of rising inflationary signals and uncertainties over US tariffs.

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.