(On the evening of August 22, 2025), the cryptocurrency market experienced a significant rally, primarily due to the remarks made by Federal Reserve Chairman Jerome Powell at the global central bank annual meeting, which were interpreted by the market as a major dovish signal.
Before Powell's speech in Jackson Hole, Wyoming, the market was generally in a cautious wait-and-see state, with prices of major cryptocurrencies like Bitcoin showing a trend of fluctuations and declines. Investors' focus was entirely on this speech, hoping to find clues regarding future interest rate policies, particularly whether there would be a rate cut in September.
The key turning point of the event was the content of Powell's speech:
Dovish signals released: Powell pointed out in his speech that the downside risks facing the U.S. labor market are increasing, and changes in risk balance may make it appropriate to adjust the policy stance. This statement was generally interpreted by the market as being more “dovish” than expected, leaning towards adopting a more accommodative monetary policy.
Expectations of rate cuts soar: After the speech, the market's expectations for a rate cut by the Federal Reserve in September significantly increased. According to the CME Group's “FedWatch” tool, the probability of a 25 basis point rate cut in September surged to over 90%.
Risk assets broadly rise: Since rate cuts usually mean cheaper funds, this encourages investors to shift their money from safe income-generating investments to high-risk, high-return assets like stocks and cryptocurrencies. Therefore, after Powell's speech, the global risk asset market, including U.S. stocks and cryptocurrencies, saw a strong rally.
Specifically regarding the performance of the cryptocurrency market:
Bitcoin (BTC): The price responded with a surge, breaking through the $116,000 and even $117,000 levels.
Ethereum (ETH): Performed even stronger, with a massive increase, soaring over 12% to 14%, with prices breaking through $4,800, nearing its all-time high.
Altcoins generally rise: Led by Bitcoin and Ethereum, other altcoins such as Dogecoin and Solana also experienced remarkable increases.
