Last night, Federal Reserve Chairman Powell released a rare "dovish" signal at the Jackson Hole annual meeting, prompting the market to significantly bet on a rate cut in September, with the probability approaching 90%.
With soft employment data and ongoing declines in inflation, Powell's statement that "risk balances are changing" was interpreted by the market as a clear signal of a policy shift, almost certainly indicating that the Federal Reserve will initiate a rate cut in September.
This expectation quickly boosted liquidity return expectations, and the crypto market welcomed a double benefit: lower funding costs and continued institutional buying. With multiple factors driving this, ETH surged strongly, finally breaking through its previous high after 1384 days, setting a new historical record.
