Powell rate cut prospects rose after Fed Chair Jerome Powell said the Fed is “not on a preset course,” signaling a possible September rate cut; Bitcoin and other cryptocurrencies rallied immediately as markets priced in easier policy ahead.
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Fed hint of easing at Jackson Hole spurred an immediate crypto rally.
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Bitcoin jumped intraday while markets weighed inflation risks versus labor strength.
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Data: Bitcoin rose from $112,000 to $114,700 and Ethereum from $4,300 to $4,600 within 15 minutes (CoinGecko data).
Powell rate cut: Bitcoin jumped after Powell left the door open for a September rate cut; read market reaction and key takeaways for traders.
What did Powell say about a rate cut at Jackson Hole?
Federal Reserve Chair Jerome Powell said the central bank is “not on any preset course” and that the “baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” signaling that a September rate cut is possible if risks tilt toward weaker inflation or labor outcomes.
How did Bitcoin and Ethereum react to Powell’s remarks?
Markets responded quickly: Bitcoin rose from $112,000 to $114,700 and Ethereum climbed from $4,300 to $4,600 within 15 minutes, according to CoinGecko. Despite the intraday rally, both assets remained down over the past week, reflecting lingering volatility and macro uncertainty.
Why did markets move after Powell’s speech?
Powell balanced a warning about lingering inflation risks with a clear signal that policy is data-dependent. That combination prompted traders to reprice the odds of policy easing, boosting risk-on assets like cryptocurrencies almost immediately.
What are the inflation and tariff risks Powell highlighted?
Powell emphasized that tariff-driven price increases may not yet be fully reflected in inflation data. He warned tariffs can continue to filter through supply chains for months, and the Fed will guard against a one-time price jump becoming persistent inflation.
Which expert views were noted following the speech?
Market analysts cautioned that Powell’s remarks could be read as “cautiously hawkish.” Juan Leon, Senior Investment Strategist at Bitwise, expected Powell to stress sticky inflation and tariff uncertainty while avoiding a firm pre-commitment to a September cut—views that align with the observed mixed market reaction.
When should traders expect clearer signals?
Clearer guidance will come from upcoming inflation prints and labor data ahead of the September meeting. The Fed’s data-dependent stance means each new release can materially swing market expectations.
Frequently Asked Questions
How large was the crypto move after Powell’s speech?
According to CoinGecko data, Bitcoin rose from $112,000 to $114,700 and Ethereum from $4,300 to $4,600 within 15 minutes of Powell’s remarks; both remained slightly lower on the week.
Does Powell’s comment guarantee a rate cut?
No. Powell’s statement signals flexibility and a higher probability of easing if data soften, but it does not constitute a commitment to cut rates in September.
Key Takeaways
- Immediate market impact: Powell’s data-dependent language triggered an intraday crypto rally.
- Policy stance: The Fed is “not on a preset course,” increasing the chance of a September cut if data support it.
- Trader action: Monitor inflation and labor data, and consider rebalancing exposure based on evolving odds of easing.
Conclusion
Powell’s Jackson Hole remarks left markets reassessing the timing of Fed easing. The central bank’s data-dependent approach means traders should watch upcoming inflation and jobs reports closely. COINOTAG will continue monitoring official data and market responses to inform readers of further developments.
Published: 2025-08-22 | Updated: 2025-08-22 | Author: COINOTAG
