Bitcoin Rises with Powell's Hints of Interest Rate Cuts in September
In his Jackson Hole speech, Federal Reserve Chairman Jerome Powell—approaching the end of his term—hinted at the possibility of lowering interest rates before the end of the year without providing further details.
Powell indicated a broader slowdown from previous estimates in the U.S. economy, with unemployment at 4.2% in July still historically low and relatively stable throughout the year.
Markets interpreted the message with dovish leanings: Bitcoin quickly surged from below $112,000 to nearly $116,000 following the speech, leading to a sharp wave of liquidations in Bitcoin and a number of alternative currencies.
High anticipation for the September meeting of the Federal Open Market Committee, with greater sensitivity of high-risk assets to any surprises in the data.
