On the evening of August 22, 2025, U.S. Federal Reserve Chairman Jerome Powell delivered a dovish speech at the Jackson Hole Global Central Bank Symposium, triggering a strong reaction in global markets.
Powell pointed out that the downside risks to U.S. employment are rising, and a policy shift may be needed to balance risks. The market generally interprets this as a clear signal of impending interest rate cuts.
As a result, risk assets surged significantly, with the cryptocurrency market being the main beneficiary. In the early hours of August 23, Ethereum (ETH) once soared to $4,888.48, breaking its previous all-time high of $4,878 set in November 2021. Meanwhile, Bitcoin (BTC), XRP, and BNB also rose by over 3%.
This macro backdrop and market response have far-reaching implications for institutions planning to enter the cryptocurrency exchange industry.
1. Liquidity tailwinds are favorable for risk assets.
Interest rate cut expectations imply a return of liquidity. Funds may flow out of low-yield traditional assets and into high-risk, high-return markets—cryptocurrencies will become a primary destination.
For exchanges, this will translate into higher trading activity and deeper market participation, creating a favorable environment for the launch and expansion of new platforms.
2. Market sentiment is turning optimistic—seize the golden window.
ETH's new high not only attracts new capital but also reignites investor confidence. Coupled with media coverage and discussions on social platforms, the market is likely to welcome a new wave of retail capital influx and institutional participation.
For exchanges, this is the best time to capture users and market share. Entering during the early stages of a bull market helps establish brand exposure and accelerate user growth.
3. Strategic entry points in the growing competitive landscape.
Although top exchanges dominate in scale, the rapidly expanding market is not entirely monopolized.
New entrants can still break through by focusing on regional markets, prioritizing compliance, or innovating product solutions.
For projects with institutional backgrounds, the current market upcycle is an ideal opportunity to quickly acquire customers by leveraging incoming liquidity.
4. Global trend of regulatory clarity.
With the U.S. GENIUS Act officially taking effect and Hong Kong advancing stablecoin legislation, the regulatory frameworks in major jurisdictions are gradually becoming clearer.
This shift means that compliance-oriented business models will become the industry standard.
For institutional investors and regulated exchanges, regulatory clarity will translate into a sustainable competitive advantage.
Conclusion: The best time to launch a cryptocurrency exchange.
Powell's dovish comments not only highlight how macro policies directly impact the crypto market but also provide strategic signals for crypto exchange builders.
A liquidity tailwind will drive higher trading activity.
ETH reaching a new high ignites confidence and capital inflow.
Entering a bull market provides a unique market capture window.
Regulatory clarity benefits compliant, institutional-grade platforms.
For institutions planning to enter the cryptocurrency exchange space, now is the best time to act.
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