Wall Street Closes Higher After Powell Mentions Rate Cut
Ripple (XRP) climbed 7.5% to $3.08; BNB rose 7.2% to $894.76; Tron (TRX) advanced 3.6% to $0.3663; and Cardano (ADA) jumped 9.8% to $0.9334.
Quick overview
- The cryptocurrency market experienced a rally following Federal Reserve Chairman Jerome Powell's hints at a potential rate cut in September.
- Bitcoin rose 4.1% to $116,874, while Ethereum increased by 10.4% to $4,840.74, with altcoins also seeing significant gains.
- Despite previous declines due to weak institutional demand, there are signs of resilience as institutions added BTC during the dip.
- The entry of CMB International Securities into virtual asset trading in Hong Kong marks a significant step in the regulated expansion of crypto infrastructure in Asia.
The cryptocurrency market rallied following comments from Federal Reserve Chairman Jerome Powell, who raised the possibility of a rate cut in September.
Optimism returned to crypto markets, and selling pressure on Bitcoin (BTC) eased by the end of the week after Powell’s keynote speech at Jackson Hole, where he signaled a potential rate reduction. Meanwhile, altcoins gained more than 10% over the week.
BTC rose 4.1% in the past 24 hours to $116,874, while Ethereum (ETH) traded at $4,840.74, up 10.4% for the week, according to Binance. Other altcoins also saw strong gains: Solana (SOL) and memecoin Dogecoin (DOGE) surged 11%, while Lido Staked Ether (STETH) jumped 15.3%.
Ripple (XRP) climbed 7.5% to $3.08; BNB rose 7.2% to $894.76; Tron (TRX) advanced 3.6% to $0.3663; and Cardano (ADA) jumped 9.8% to $0.9334.
Buenbit noted in its weekly market report that the market had previously experienced a decline due to “weak institutional demand and profit-taking.” Open interest in BTC futures remains high at $67 billion, reflecting a leveraged market sensitive to even moderate price movements.
Despite the prior correction, there were signs of resilience. “Institutions such as Metaplanet and Strategy added a total of 1,185 BTC during the dip, showing confidence at these price levels,” the report highlighted.
Additionally, the entry of CMB International Securities into virtual asset trading in Hong Kong—including BTC, ETH, and USDT—marks a milestone in the regulated expansion of crypto infrastructure in Asia, strengthening the presence of traditional financial actors in the ecosystem.
Powell’s Speech Drives Crypto Rally
Crypto markets closely followed Powell’s remarks on Friday, echoing Wall Street’s reaction to the potential rate cut signaled by the U.S. central bank chairman.
In his Jackson Hole keynote, Powell discussed the “shifting risks,” particularly in the U.S. labor market: “While the labor market appears to be in balance, it is a curious balance resulting from a marked slowdown in both the supply and demand for workers.”
He described it as an “unusual situation,” suggesting that “downside risks to employment are rising,” which could manifest quickly through “a significant increase in layoffs and a rise in unemployment.”
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