Bitcoin Soars Past $115,000 After Powell’s Jackson Hole Speech

The cryptocurrency market surged on Friday after U.S. Federal Reserve chair Jerome Powell delivered his much-anticipated remarks at the central bank’s annual symposium in Jackson Hole, Wyoming. Bitcoin rallied above $115,000, while Ethereum climbed more than 8% to trade above $4,600, sparking widespread optimism across digital assets.

Market Reaction: Crypto Rally and Liquidations

Powell’s comments triggered an immediate response from investors. The total global cryptocurrency market capitalization rose 2.5% to nearly $3.95 trillion, underscoring renewed risk appetite.

At the same time, the sudden spike in prices caught short sellers off guard. Liquidations across major exchanges surged 85%, exceeding $585 million in value. Traders who had bet against crypto prices were forced out of their positions as bullish momentum swept the market.

Powell’s Remarks and the Fed’s Outlook

Although Powell stopped short of confirming an interest rate cut for September, his speech strongly hinted that the central bank could pivot soon. He emphasized that monetary policy remains “restrictive” and acknowledged that conditions may now justify a shift.

“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said during the address.

Markets interpreted the language as a clear sign of easing ahead. The CME FedWatch tool, which tracks investor expectations, now shows a 90% probability of a rate cut in September.

Implications for Crypto and Risk Assets

Powell also suggested that the Fed intends to move away from a rigid framework that requires inflation to be anchored strictly at 2%. This flexibility could support broader risk assets, including cryptocurrencies, which tend to benefit when borrowing costs fall and liquidity increases.

The prospect of looser monetary policy has reinforced bullish sentiment across financial markets. With Bitcoin already breaking new records and Ethereum climbing sharply, analysts suggest other altcoins could follow if the Fed indeed confirms a policy shift in the weeks ahead.