Bitcoin News Today: Bitcoin's Bull Run Revived by Powell's Policy Surprise

Bitcoin surged past $117,000 in late August 2025, breaking through key resistance levels following a policy pivot hint from Federal Reserve Chair Jerome Powell during his speech at the Jackson Hole Symposium. The move triggered significant short liquidations and positioned the market for further upward momentum, with analysts noting the re-emergence of a bullish trend. According to CoinGlass data, over $379 million in short positions were liquidated, with Bitcoin accounting for $56.4 million of that total. The breakout saw the price rise more than 4% from a six-week low of $111,600 on Bitstamp to an intraday high of $117,300, with over $259.5 million in ask orders concentrated between $117,000 and $118,000 on the liquidation heatmap [1].

The surge in Bitcoin’s price was largely attributed to Powell’s remarks, which signaled potential rate cuts in September. The Fed chair indicated that the labor market’s unusual balance and shifting risks may warrant policy adjustments. This dovish tone surprised many who had positioned for a more hawkish stance, leading to an immediate shift in investor sentiment. Prediction market platforms such as Polymarket and the CME Group’s FedWatch tool showed the probability of a 25-basis-point cut rising from 56% to 80% and 75% to 87%, respectively [1]. Market participants, including Fundstrat’s Tom Lee, interpreted the speech as “dovish” and in line with expectations, reinforcing the case for a rate cut [1].

Bitcoin’s rally was mirrored by broader crypto and risk-on assets, with ether and altcoins such as Solana and XRP also experiencing significant gains. The price of Ethereum climbed nearly 15% to $4,760, while Solana and XRP each surged over 6% in less than an hour [1]. The market’s optimism was further reflected in the Bitcoin liquidation heatmap, which showed the price absorbing liquidity above $117,000, indicating a strong push higher. Analyst Michael van de Poppe of MN Capital noted that the recent sweep below $112,000 provided a favorable entry point for traders, reinforcing the idea that the “uptrend is back” [1].

Looking ahead, several industry analysts have expressed optimism about Bitcoin’s trajectory. Bitwise’s André Dragosch suggested that a potential move to allow cryptocurrencies in 401(k) retirement plans under U.S. President Donald Trump could push Bitcoin to $200,000 by year-end [1]. Meanwhile, BitQuant’s cycle top target of $145,000 for 2025 remains in play, and Bitwise’s long-term forecast envisions a price of $1.3 million by 2035, driven by factors such as institutional adoption and inflation-hedging demand [2]. However, analysts caution that the path forward is not without risks, including regulatory uncertainty and potential volatility from macroeconomic developments [2].

The Jackson Hole speech also marked a turning point in market positioning. Prior to Powell’s comments, traders had been selling U.S. spot Bitcoin, anticipating a hawkish tone. However, the Fed’s openness to rate cuts aligned crypto traders with traditional finance investors, reducing the divergence in expectations. The Coinbase-Binance price spread and Bitcoin options pricing had signaled bearish sentiment, but the post-speech rally suggests a shift in risk appetite. As the market digests Powell’s remarks, analysts remain watchful for further catalysts, with the possibility of a 25-basis-point cut in September now the most likely scenario [1].

Source:

[1] Bitcoin and Crypto Stocks Surge as Powell's Rate-Cut Hint Revives Risk Appetite (https://www.investopedia.com/bitcoin-and-crypto-stocks-surge-as-powell-rate-cut-hint-revives-risk-appetite-11795898)

[2] Bitcoin Price to Hit $1.3M by 2035, Says Crypto Asset Manager Bitwise (https://www.coindesk.com/markets/2025/08/22/bitcoin-price-to-hit-usd1-3m-by-2035-says-crypto-asset-manager-bitwise)