Bitcoin (BTC) surged back above $116,000 on Friday, staging a powerful rebound from six-week lows after Federal Reserve Chair Jerome Powell dropped his strongest hints yet at an interest-rate cut in September.
The move came in minutes, with BTC climbing more than 3% as Powell’s remarks at the Jackson Hole economic symposium sparked a risk-on rally across crypto and equities, while the U.S. dollar slipped.
Powell Opens the Door for Policy Shift
In his annual Jackson Hole address, Powell admitted that “the current situation with inflation and the labor market may warrant adjusting” the Fed’s monetary stance. For markets, the wording was clear: the central bank is preparing to ease.
That single signal was enough to reverse sentiment after weeks of uncertainty, with traders now betting on a 25 basis point cut at September’s FOMC meeting.
“The Fed Chair is setting the stage for a September cut,” summarized macro newsletter The Kobeissi Letter, echoing CME’s FedWatch Tool, which now shows a strong tilt toward easing.
Bitcoin Rebounds from Local Lows
Just hours earlier, BTC / USD had swept as low as $111,600, its weakest level since July 10. The sudden bounce flipped the script, with price shooting straight through $115K and reclaiming $116K in what analysts called a “liquidity grab.”
“Good bounce from the range low sweep on the back of a dovish Powell. Going to remain volatile for the rest of the day,” trader Daan Crypto Trades noted.
Others highlighted technical confluence. Scott Melker, the “Wolf of All Streets,” pointed out bullish RSI divergence across 4-hour, 6-hour, and even daily timeframes, signals aligning perfectly with the macro catalyst.
What Comes Next for BTC?
With the $112K support zone holding and fresh demand kicking in, analysts say the momentum could extend further if macro tailwinds persist.
“Anything can happen, but when strong technical signals line up with macro news, the move often has legs,” Melker added.
Still, volatility is likely to remain elevated as markets digest Powell’s tone ahead of September’s meeting.
For now, however, Bitcoin’s message is loud and clear: bulls aren’t ready to give up control just yet.
