Bitcoin News Today: Cryptocurrency Market Surpasses $4 Trillion as Fed Signals Rate Cuts

The cryptocurrency market surged past a $4 trillion market capitalization following remarks by U.S. Federal Reserve Chair Jerome Powell in August 2025, which signaled the possibility of interest rate cuts. The dovish tone from Powell triggered a global shift toward risk-on assets, with Bitcoin climbing 3% and Ethereum rising over 7% in a single day. The total crypto market cap, led by Bitcoin’s record high of approximately $117,000 and Ethereum’s price above $4,650, reflected heightened institutional interest and inflows into digital assets [1].

Powell’s comments during the Jackson Hole Economic Symposium emphasized the need for a policy adjustment due to evolving economic conditions and downside risks to employment. His remarks were interpreted as supportive of risk assets, with analysts such as Thomas Lee of Fundstrat noting that both small-cap equities and cryptocurrencies stood to benefit from a potential rate cut. The S&P 500, NASDAQ, and Dow Jones also rallied in response to the anticipated monetary easing [1].

The market’s rapid reaction underscored its sensitivity to central bank policy signals. Large-cap tokens and decentralized finance (DeFi) protocols, particularly those tied to Bitcoin and Ethereum, saw significant trading volume and increased liquidity. The CME FedWatch data suggested a high probability of a September rate cut, reinforcing the market's positive outlook. The Federal Reserve’s influence over both traditional and crypto markets has become increasingly evident, with institutional investors aligning their strategies to anticipated macroeconomic shifts [1].

Institutional interest in cryptocurrencies has grown steadily, with corporate treasury allocations and blockchain-based platforms expanding their reach. BNB, for instance, reached a new all-time high of $881, becoming the fifth-largest cryptocurrency by market capitalization. On-chain metrics, such as the 16.8 million weekly active users on the BNB Chain, further highlighted the network’s adoption and ecosystem growth. The momentum was also reflected in technical indicators, which showed bullish patterns, including a double-bottom formation and a positive crossover in moving averages [2].

However, the market has shown signs of volatility, with the total market cap declining from $4.08 trillion to $3.89 trillion in the week following Powell’s speech. While some corporate acquisitions of crypto assets have been met with strong performance, others—such as Windree Therapeutics—have seen stock declines post-announcement, illustrating the unpredictable nature of corporate crypto strategies [2].

Despite the fluctuations, the combination of favorable monetary policy signals, strong on-chain activity, and institutional adoption suggests that the crypto market remains in a generally bullish phase. The integration of digital assets into traditional financial systems, such as Kraken’s expansion of its xStocks platform onto the BNB Chain, has further reinforced the market’s legitimacy and growth potential [3].

[1] https://coinmarketcap.com/community/articles/68a939312d802c508a83fc1a/

[2] https://finance.yahoo.com/news/bnb-token-strikes-record-high-113904145.html

[3] https://finance.yahoo.com/news/bnb-hits-time-high-early-000048140.html