green light for lower rates and crypto rally?
The post green light for lower rates and crypto rally? appeared on BitcoinEthereumNews.com. The speech of the president of the Federal Reserve, Jerome Powell, at the economic symposium in Jackson Hole (August 22, 2025) has shone a spotlight on the financial markets — and, more surprisingly, on cryptocurrencies. In that annual event, Powell provided a message anchored in prudence, but also open to the idea of a possible rate cut as early as September, triggering immediate reactions on Bitcoin (BTC) and Ethereum (ETH). 1. Powell’s speech: precarious balance and tariffs under scrutiny Powell described the U.S. labor market as “a curious balance”: while remaining strong in terms of employment — with an unemployment rate stable around 4.2% — both supply and demand for labor are weakening, increasing the risk of a sudden rise in unemployment. He added that tariffs are pushing prices upward, but he considers it possible that such effects may prove to be transitory, to be managed with caution . On the front of future decisions, it was stated that, with monetary policy already restrictive, the overall framework and “the shift in the balance of risks could justify an adjustment of the stance,” thus opening up the possibility of a rate cut in the September meeting. 2. Reaction of traditional markets The stock futures reacted positively, with the S&P 500 opening slightly up, anticipating that Powell’s words signal a potential monetary easing. Bull pushes were especially seen on assets sensitive to the cost of money and on the reduction of the risk premium. 3. Immediate effects on Bitcoin and Ethereum The response of the crypto-market was swift, but mixed: Bitcoin recorded an increase of around 1.2%, hovering around $114,900 after the speech—a positive reaction reflecting the inflow of liquidity favorable to risk assets. Ethereum, on the other hand, gained almost 5%, reaching approximately $4,484, also supported by a market more inclined to…
The post green light for lower rates and crypto rally? appeared on BitcoinEthereumNews.com.
The speech of the president of the Federal Reserve, Jerome Powell, at the economic symposium in Jackson Hole (August 22, 2025) has shone a spotlight on the financial markets — and, more surprisingly, on cryptocurrencies. In that annual event, Powell provided a message anchored in prudence, but also open to the idea of a possible rate cut as early as September, triggering immediate reactions on Bitcoin (BTC) and Ethereum (ETH). 1. Powell’s speech: precarious balance and tariffs under scrutiny Powell described the U.S. labor market as “a curious balance”: while remaining strong in terms of employment — with an unemployment rate stable around 4.2% — both supply and demand for labor are weakening, increasing the risk of a sudden rise in unemployment. He added that tariffs are pushing prices upward, but he considers it possible that such effects may prove to be transitory, to be managed with caution . On the front of future decisions, it was stated that, with monetary policy already restrictive, the overall framework and “the shift in the balance of risks could justify an adjustment of the stance,” thus opening up the possibility of a rate cut in the September meeting. 2. Reaction of traditional markets The stock futures reacted positively, with the S&P 500 opening slightly up, anticipating that Powell’s words signal a potential monetary easing. Bull pushes were especially seen on assets sensitive to the cost of money and on the reduction of the risk premium. 3. Immediate effects on Bitcoin and Ethereum The response of the crypto-market was swift, but mixed: Bitcoin recorded an increase of around 1.2%, hovering around $114,900 after the speech—a positive reaction reflecting the inflow of liquidity favorable to risk assets. Ethereum, on the other hand, gained almost 5%, reaching approximately $4,484, also supported by a market more inclined to…
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