#BNBATH900 BTC, ETH, XRP soar after Fed's shift
After Fed Chair Powell's dovish speech at Jackson Hole, bitcoin prices rose on Friday.
A "shift in the balance of risks" could prompt a rate cut, Powell said.
Major altcoins Ethereum, XRP, and Solana rose by 12%, 5%, and 8% following the news, while Bitcoin increased by 3%.
Bitcoin (BTC) and the cryptocurrency market recovered on Friday after Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium hinted at a rate cut due to worsening labor market conditions.
Bitcoin and the crypto market rise as Powell suggests a shift in Fed policy.
The crypto market rebounded on Friday after Jerome Powell's dovish speech at the Jackson Hole Economic Symposium reversed expectations of a hawkish market.
Powell suggested lowering rates if the labor situation poses risks.
"A preemptive action would likely be warranted if a tight labor market poses a risk to price stability," Powell said on Friday at the conference.
He stated that the Fed would move away from its "inflation compensation" policy and adopt a more flexible inflation target methodology.
Powell noted that a stable unemployment rate allows officials to carefully consider any adjustments.
"A shift in the balance of risks may warrant adjusting the policy stance," Powell added.
The speech follows the minutes from the hawkish July FOMC meeting released on Wednesday.
Powell's dovish signal on Friday has revived expectations for a 25 basis point cut in September. According to the CME FedWatch tool, the odds of a cut jumped to 90% from 73% on Thursday, while the odds of no rate cut fell to 10% from 28%.
