Bitcoin News Today: Shiba Inu Surges 5% as Fed Signals Possible September Rate Cut

Shiba Inu (SHIB) gained nearly 5% on August 22, 2025, as markets reacted to Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium. The speech hinted at the possibility of a rate cut at the Fed’s upcoming September meeting, sparking a broad market rebound across traditional and digital assets [1]. The Fed’s shift in tone, which suggested a reconsideration of its hawkish stance, led to a near-90% probability of a rate cut being priced in by traders, according to CME FedWatch data [1]. This marked a reversal from a week of declines in risk assets and triggered a surge in investor optimism.

The cryptocurrency market saw immediate action, with Bitcoin rising nearly 2% to $114,200 after a sharp drop earlier in the week. Shiba Inu, a large-cap meme token, followed suit with a strong 5% rebound, trading at $0.00001269 [1]. Ethereum fared even better, surging almost 8% after a 12% pullback, reflecting the heightened sensitivity of altcoins and meme tokens to central bank signals [1].

The Shiba Inu price action also triggered significant liquidation activity. According to CoinGlass data, approximately $53,390 in positions were liquidated in the hour following the rally, with short positions accounting for $51,300 of the total [1]. The imbalance in liquidations reached a 2,491% disparity, highlighting the aggressive nature of the price movement and the impact on leveraged traders [1]. Overall, the crypto market recorded $206 million in liquidations during the same period, with bearish positions being forced out as prices climbed [1].

Traditional markets echoed the crypto rebound. The Nasdaq Composite gained over 1% after several days of losses, while U.S. Treasuries rallied with the 10-year yield falling to 4.27%. The U.S. dollar index declined by about 0.5%, and gold prices rose 0.6%, all pointing to a broader shift in capital toward risk-on assets [1]. This coordinated move across asset classes underlines the far-reaching influence of central bank communication on global markets.

Analysts have highlighted the close correlation between risk asset performance and Fed policy expectations. The shift from a hawkish to a more neutral stance has led to a reallocation of capital into equities and digital assets, with Bitcoin, Ethereum, and Shiba Inu all experiencing synchronized price action [1]. The market’s swift response to Powell’s remarks also points to the growing importance of monetary policy in shaping investor behavior, particularly in the crypto space [3].

As traders adjust their positions ahead of the Fed’s September meeting, the broader market remains highly sensitive to policy signals. The interplay between central bank decisions and digital asset performance continues to evolve, with Shiba Inu emerging as one of the more active tokens in the current cycle [2]. The next key event will be the Fed’s policy decision in late September, which may further solidify or reverse the recent market trajectory.

Source:

[1] https://coinjournal.net/news/powell-puts-september-rate-cut-on-the-table-as-bitcoin-rises-2-and-fed-odds-swing-to-90/

[2] https://coinjournal.net/news/what-sparked-the-sudden-crypto-market-surge/

[3] https://tradersunion.com/news/editors-picks/show/455353-what-really-drives-bitcoin-price/