The crypto market rallied more than 4% to reclaim the $4 trillion mark after Federal Reserve Chair Jerome Powell signaled that US interest rates could be lowered in September.
In his speech at the Jackson Hole symposium in Wyoming, Powell said:
“The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
Following the speech, the odds of the Federal Reserve cutting its interest rate spiked to around 90%, according to data from the CME Fedwatch tool.
Thomas Lee, Chief Investment Officer at Fundstrat, described Powell’s tone as dovish and said the shift would likely support small-cap stocks and major cryptocurrencies like Bitcoin and Ethereum.
Ethereum leads market rally
As a result, Bitcoin’s price jumped more than 3% within the last 24 hours, climbing to roughly $117,000 as of press time, according to data from CryptoSlate.
Other leading tokens, including Ethereum, BNB, XRP, Solana, and Dogecoin, followed BTC’s lead and advanced more than 7% within the same time frame. ETH is trading at more than $4650 as of press time.
Meanwhile, the traditional markets also reportedly rallied. The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose by around 2% each on the news.
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Author: Oluwapelumi Adejumo
