Bitcoin, Ethereum surge as Powell hints at rate cut

Bitcoin and other cryptocurrencies jumped Friday after Federal Reserve Chairman Jerome Powell signaled the possibility of an interest rate cut during his Jackson Hole speech.

Within 15 minutes of his remarks, Bitcoin rose to $114,700 from $112,000—a 2.5% gain—while Ethereum climbed nearly 7% to $4,600, according to CoinGecko. XRP, Solana, and Dogecoin also rallied, though most altcoins remain down for the week.

A rate cut would inject more liquidity into markets, boosting risk assets like crypto. President Donald Trump has been pressing Powell to lower rates amid signs of a slowing economy.

Powell stressed that inflation risks remain elevated, but added: “The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”

He cautioned that tariffs’ impact on prices is still unfolding: “Come what may, we will not allow a one-time increase in the price level to become an ongoing inflation problem.”

Analysts said crypto’s earlier slump reflected nerves ahead of Powell’s final Jackson Hole appearance as Fed chair. Markets are now betting heavily on a September rate cut.

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