Ethereum News Today: Powell's Pivot Fuels Crypto Rally as ETH Nears All-Time High

Ethereum experienced a significant price surge ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium, pushing its value closer to an all-time high. According to data from Binance, Ethereum (ETH) rose approximately 13% to over $4,814 on August 22, 2025, nearly reaching its peak of $4,878 recorded in November 2021. This surge coincided with a 4% increase in Bitcoin (BTC) to around $117,000, with the broader cryptocurrency market capitalization climbing 6% to exceed $4.1 trillion. The rally mirrored a broader stock market upswing, as the S&P 500 gained 1.5% following Powell’s remarks.

Powell’s speech on Friday, delivered at a conference in Jackson Hole, Wyoming, hinted at potential interest rate cuts in September. He noted that the Fed’s policy stance may need adjustment amid a shifting economic landscape, with inflation risks and labor market dynamics influencing decisions. This signaled a shift from earlier caution, as traders had priced in a 72% chance of a rate cut before the speech. By the end of the event, the likelihood had climbed to 85%, according to CME FedWatch data.

The market had experienced volatility leading up to Powell’s comments. A July inflation report showing a 2.7% year-over-year increase initially fueled optimism, but a subsequent 0.9% rise in the producer price index sparked fears that the Fed might delay rate cuts. This caused crypto markets to dip before Powell’s speech, with traders withdrawing from riskier assets. However, the Fed chair’s comments alleviated concerns, leading to a notable rebound.

In the days prior, Bitcoin and Ethereum had fluctuated amid uncertainty. The week before Powell’s speech, Bitcoin had fallen 2.9% while Ethereum dropped 1.4%. Altcoins, including XRP and Solana, also saw significant gains—over 6% in some cases—following Powell’s address. Dogecoin surged more than 7%, though most altcoins remained slightly negative for the week, reflecting lingering investor caution.

An interest rate cut is typically viewed as a positive development for cryptocurrencies and other high-risk assets. It would increase liquidity in global markets, encouraging investors to seek higher-yield opportunities. This dynamic was reflected in Myriad’s prediction market, where 87% of respondents anticipated a rate cut, up from 70% earlier in the week.

While the crypto market welcomed the news, analysts highlighted the risks associated with Trump’s proposed tariffs, which could introduce new inflationary pressures. Powell acknowledged these risks, stating that the effects of tariffs on supply chains and distribution networks would take time to materialize. “We will not allow a one-time increase in the price level to become an ongoing inflation problem,” he emphasized.

Investors remain cautiously optimistic, balancing the prospect of Fed easing with the potential for renewed inflationary shocks. The market’s reaction underscores the delicate interplay between monetary policy and asset prices in the cryptocurrency space. As traders await the September meeting, the focus remains on Powell’s rhetoric and its implications for global financial markets.

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[1] title1 (https://fortune.com/crypto/2025/08/22/ethereum-price-today-bitcoin-jerome-powell-fed-chair-jackson-hole/)

[2] title2 (https://finance.yahoo.com/news/ethereum-bitcoin-spike-powell-signals-143138288.html)