Cryptos, Equities Slide as Traders Unpack Powell’s Jackson Hole Remarks

Following Powell’s speech, markets predict chance of a 75 basis point September rate hike is slightly lower compared to earlier in the week

article-image

Source: Shutterstock

share

key takeaways

  • Markets erased gains early in the trading day Friday following hawkish remarks from Fed Chair Powell in Jackson Hole
  • Analysts were unsure how to interpret the speech, predicting a slightly lower chance of a 75 basis point rate hike in September

Federal Reserve Chairman Jerome Powell took a more hawkish stance Friday morning during his Jackson Hole remarks, sending equities sliding. Crypto markets were mixed as traders continue to speculate what will happen at the next Fed policy meeting in September. 

While recent data, such as plunging unemployment numbers and the latest Consumer Price Index (CPI) report, may suggest that inflation is cooling, the central bank head warned that there is still a long way to go before sustained price stability is reached. 

“Estimates of longer-run neutral are not a place to pause or stop,” Powell said during his speech on the second day of the Economic Policy Symposium, hosted by the Kansas City Federal Reserve.

“Our decision at that September meeting will depend on the totality of the incoming data and the evolving outlook,” he said. 

Powell’s speech slightly swayed futures markets, which predicted a 54.5% chance of a 75 basis point rate hike in September immediately following the remarks, according to data from CME Group. In the days preceding the Jackson Hole meeting, the probability of a third consecutive 75 basis point increase sat at 58.5%. 

The S&P 500 slipped following the speech, losing 1%. The tech-heavy Nasdaq also lost, trading 1% lower at time of publication. Bitcoin and ether declined as well, losing 0.4% and 1%, respectively.

“Fed Chairman Powell’s comments sent an initial chill through the markets, with them selling off on the insistence that the central bank will keep hiking rates until he feels inflation is under control,” Josh Olszewicz, head of research at digital asset fund manager Valkyrie Investments, said.

“Powell’s admission that there will be pain before there is relief is rather hawkish, but both equities and crypto assets showed surprising resilience by rebounding rather quickly, which can be interpreted as evidence that the next rate hike is likely already priced in,” Olszewicz said.

Even as futures markets remained mixed, Olszewicz is betting markets will take a hawkish interpretation of Powell’s remarks. He predicts another 75 basis point rate hike in late September, which he expects markets will largely have already priced in. 

“[I] do not expect there to be a drastic effect on the markets should that come to pass, followed by successive rate hikes until inflation is reigned in and the unemployment rate returns to a healthier number,” Olszewicz said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

🚀 Build What’s Next — Permissionless IV Hackathon Join us June 22–23 in Brooklyn for the Permissionless IV Hackathon — a 36-hour sprint hosted by Cracked Labs and Blockworks where top builders turn ideas into real products. Come to launch, not just […]

recent research

Research Report Templates (10).png

Research

Kamino has evolved into a full-stack asset scaling suite with V2: unlocking new markets, improving capital efficiency, and catering to various risk profiles. We believe it is best positioned to become the credit backbone of Solana as the ecosystem matures. Simply put, KMNO remains our highest-conviction bet in the Solana ecosystem. This report lays out our thesis.

article-image

Greenwood was a success story before it was a tragedy

article-image

All eight included staking in their most recent SEC filings

article-image

With an updated Summary of Economic Projections, the Fed sees growth slowing and inflation increasing

article-image

Where do crypto mobile games go from here?

article-image

Bybit’s Byreal, Binance Alpha and Coinbase’s DEX integrations

article-image

This isn’t the worst hack to ever hit Mt. Gox, but it could be the most entertaining