Bitcoin News Today: Crypto Market Surges on Powell's Dovish Remarks Bitcoin Up 3.4% Ethereum Jumps 12%

The crypto market experienced a sharp rebound following Federal Reserve Chair Jerome Powell’s dovish comments during the Jackson Hole Economic Symposium on Friday. The remarks, which suggested a potential shift in the Fed’s policy stance, led to a surge in major cryptocurrencies including Bitcoin, Ethereum, and XRP. Bitcoin rose by 3.4%, pushing above $116,000 at the time of publication, while Ethereum surged 12% to exceed $4,600. XRP also gained 5%, breaking above $2.84 [2]. Solana (SOL) added 8% to the rally, reflecting broad-based optimism across the crypto market.

Powell’s speech highlighted a “shifting balance of risks” in the labor market and signaled that the Fed could consider rate cuts if economic conditions warrant it. He emphasized a more flexible inflation targeting approach and noted that a tight labor market could pose risks to price stability [1]. These comments contrasted with the hawkish tone observed in the FOMC’s July meeting minutes, which had suggested a more cautious stance toward rate adjustments. Following Powell’s address, market expectations of a 25 basis-point rate cut in the September meeting climbed close to 90%, up from 73% the previous day, according to the CME FedWatch tool [1].

The market’s swift reaction underscored the growing sensitivity of crypto assets to macroeconomic developments and central bank messaging. Analysts suggested that a dovish Fed policy could bolster Bitcoin’s appeal as a hedge against fiat uncertainty and encourage institutional inflows. “This is bullish for the front end of the yield curve and risk assets, where Bitcoin is a fast horse in the race,” said Jessy Gilger, Investment Advisor at Unchained [1]. The broader crypto market capitalized on the sentiment, with the total market capitalization rising by over 5% in 24 hours, pushing past the $4 trillion threshold [1].

The rally was also supported by a return in risk appetite, evident in the performance of related equities and the broader market environment. Ethereum’s surge was further amplified by positive movements in equities linked to the crypto sector. XRP’s breakout above key levels has led analysts to speculate that the asset may be entering a more bullish phase [2]. The correlation between Fed policy and crypto performance has grown stronger in recent months, with investors closely monitoring central bank communications for directional clues.

Bitcoin’s recent consolidation around $113,000 is being watched for signs of a potential rebound driven by the Fed’s evolving stance. The market’s response highlights the increasing integration of cryptocurrencies into mainstream financial strategies, as traditional macroeconomic signals play a more prominent role in shaping investor behavior. As the Fed’s policy outlook continues to develop, the performance of leading cryptocurrencies will remain closely tied to central bank messaging and macroeconomic developments.

Source:

[1] FXStreet (https://www.fxstreet.com/cryptocurrencies/news/crypto-price-movers-bitcoin-ethereum-xrp-rally-as-fed-chair-powell-turns-dovish-202508221713)

[2] Mitrade (https://www.mitrade.com/insights/news/live-news/article-3-1062709-20250822)