Powell’s Jackson Hole speech sparks renewed momentum amid rate‑cut hopes

This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.

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Federal Reserve Chair Jerome Powell’s keynote at the Jackson Hole Economic Symposium delivered a cautiously optimistic signal that seems to have renewed momentum across crypto markets. 

Bitcoin rebounded to trade near $115,800, up around 2% in the last 24 hours, responding to Powell’s implicit dovish lean on monetary policy. ETH and other major tokens are also showing strength, reflecting renewed investor interest heading into what could be a pivotal September Federal Reserve meeting.

Markets had pulled back in the days leading up to the speech, with BTC dipping below $112,000 and ETH sliding over 4%. Traders positioned defensively amid uncertainty, but Powell’s measured tone, emphasizing flexibility and data reliance, appears to have reassured markets enough to trigger a modest relief rally. Price action suggests crypto remains highly sensitive to shifts in central bank policy expectations.

Interest rate easing typically increases liquidity and investor risk appetite, which could further boost capital flows into DeFi platforms, stablecoin infrastructure and tokenized financial instruments. Institutions and retail alike may view this environment as more conducive to launching and scaling in Web3.

However, market watchers caution that Powell’s approach was more observant and data-driven rather than decisively dovish, suggesting any further rallies could hinge on forthcoming economic data and Fed communication.