Ethereum News Today: Fed Rate Cut Hints Spark 15% Crypto Surge Bitcoin Hits $114200 Ether Hits $4866

Late August 2025 witnessed a significant surge in the cryptocurrency market, largely attributed to Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Symposium on August 23. The Fed’s hint at potential early rate cuts rekindled risk appetite among investors, driving sharp price increases in major digital assets. Bitcoin (BTC) climbed approximately 2% to $114,200, while Ether (ETH) reached a new all-time high of $4,866 following a near 15% gain in 24 hours [2][8].

The market reacted swiftly to Powell’s suggestion that the Fed may need to cut interest rates, pushing the probability of a September rate cut from roughly 35% in early August to nearly 80% [3][6]. This shift in expectations led to widespread liquidation of short positions, with over $750 million in short liquidations reported across the crypto market [1][7]. Ethereum, in particular, triggered a $259 million collapse in short positions as it moved closer to 2021 highs [7].

Institutional involvement also intensified, with major players increasing their crypto holdings. A notable example includes a $45 million ETH purchase by BitMine Technologies, underscoring growing confidence in the market’s upward trajectory [1]. The market’s reaction was further reflected in crypto sentiment indicators, with popular sentiment trackers moving into the “Greed” zone for the first time since late July [4].

Historically, accommodative monetary policy has favored high-risk, high-return assets like cryptocurrencies. With the Fed signaling a cautious but potential shift toward rate reductions, investors are reallocating capital from cash and bonds into equities and digital assets. Powell emphasized the importance of closely monitoring economic data before finalizing policy decisions, indicating that any rate cuts would likely be gradual [6][9].

Analysts had previously forecast the first rate cut as late as December, but Powell’s remarks have prompted many to adjust their timelines [6]. While the immediate market reaction has been bullish, uncertainty remains regarding the Fed’s next steps. Observers continue to monitor key economic indicators such as inflation and employment data to assess the pace and scale of potential policy changes.

The surge in crypto prices has also drawn attention to lower-cap altcoins, with some observers suggesting that the favorable macroeconomic environment could benefit high-potential assets [5]. However, volatility remains a significant risk, and the sustainability of current price levels will largely depend on the Fed’s upcoming decisions and global economic developments.

Source:

[1] CoinMarketCap. https://coinmarketcap.com/community/articles/68aab032bbca721a658d3f97/

[2] Investopedia. https://www.investopedia.com/bitcoin-and-crypto-stocks-surge-as-powell-rate-cut-hint-revives-risk-appetite-11795898

[3] Cointelegraph. https://cointelegraph.com/news/crypto-market-greed-bitcoin-ether-price-rally-federal-reserve-dovish

[4] CryptoPotato. https://cryptopotato.com/september-rate-cut-odds-surge-after-powell-whats-next-for-btc-and-eth/

[5] Bitcoinist.com. https://bitcoinist.com/best-crypto-to-buy-as-fed-chair-jerome-powell-hints-september-rate-cut/

[6] Reuters. https://www.reuters.com/markets/wealth/powell-says-fed-may-need-cut-rates-will-proceed-carefully-2025-08-22/

[7] AInvest. https://www.ainvest.com/news/ethereum-news-today-ethereum-surges-15-triggering-744m-crypto-liquidations-powell-hints-rate-cuts-2508/

[8] CoinDesk. https://www.coindesk.com/markets/2025/08/22/ethereum-surges-to-new-all-time-high-amid-likely-september-rate-cut

[9] The Economic Times. https://m.economictimes.com/news/international/us/cryptocurrency-spikes-after-after-powell-hints-at-rate-cut-bitcoin-ethereum-litecoin-surge-is-momentum-finally-here/articleshow/123457352.cms