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Cryptocurrencies surged on August 22 following Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole Economic Symposium, hinting at a potential September rate cut. Bitcoin (BTC) climbed 3.35% to $117,300, Ethereum (ETH) soared 13% to $4,740, XRP gained 5% to $2.09, and Binance Coin (BNB) hit a record $882, up 8%, per Cointelegraph. The crypto market cap rose 5% to $4.12 trillion, driven by renewed investor optimism.
Powell’s speech highlighted rising employment risks and confidence in inflation nearing the Fed’s 2% target, signaling a shift from a hawkish stance. “The time has come for policy to adjust,” Powell said, per CoinDesk, boosting risk assets like cryptocurrencies. Lower interest rates typically weaken the dollar, making BTC, ETH, and altcoins more appealing than bonds. Binance’s BTC futures open interest jumped to $13.3 billion, with $656 million in derivatives liquidations, per BitRss.
The rally overcame recent bearish pressure, with BTC breaking the $115,000 resistance and ETH nearing its all-time high of $4,868. Technical indicators, like ETH’s rising channel pattern, suggest further upside, though RSI levels near 56 indicate caution, per FXStreet. X posts, including @MarcShawnBrown, celebrated BNB and ETH hitting new highs, reflecting bullish sentiment.
Analysts like Lark Davis predict a Q4 surge if rate cuts materialize, but warn of volatility if macroeconomic data shifts. With $1.15 billion in BTC ETF outflows last week, per FXStreet, institutional demand remains pivotal. The crypto market’s sensitivity to Fed policy underscores opportunities and risks as investors eye September’s FOMC meeting.
