Due to dovish comments from Fed Chairman Powell, the cryptocurrency market rebounded on Saturday, with market sentiment indicators returning to 'greed.'
The Crypto Fear and Greed Index reached 60 on Saturday, a significant increase from 50 on Friday, after briefly falling into the fear zone earlier this week.
Powell mentioned at the Jackson Hole Economic Symposium that the current inflation and labor market conditions may require adjustments to the Federal Reserve's monetary policy.
ETH is the 'most sensitive cryptocurrency asset.'
After Powell's speech, Bitcoin surged 5% to $117,300, with shorts losing $379.88 million. Meanwhile, Ethereum rose 11.51%, nearing its historical high of $4,851.
Axie Infinity co-founder Jeffrey Zirlin called Ethereum the 'most sensitive cryptocurrency asset.'
'When interest rates fall, the yield from depositing stablecoins in decentralized finance widens compared to bank deposits,' he said.
According to the CME FedWatch tool, 75% of market participants expect an interest rate cut at the Federal Reserve meeting on September 17.
However, St. Louis Fed President Alberto Musalem stated that more data is needed to decide whether to support interest rate cuts.
In this context, market participants anticipate that if Powell hints at rate cuts, the crypto market will soar.
Related: Bitcoin price breaks to 117K, short positions are liquidated, opening a new historical high.
