Key Points
- Bitcoin’s price spiked above $62,000 following the US Fed’s statement on rate cuts.
- Jerome Powell indicated that the central bank is poised to cut interest rates in September.
Bitcoin’s price surged above $62,000 earlier today following the speech of Federal Reserve’s Chair Jerome Powell at the Jackson Hole Economic Symposium.
At the moment of writing this article, BTC is trading above $61,600, up by over 2% in the past 24 hours.
The crypto market was awaiting the Fed’s speech, as today’s meeting and the Chair’s stance on potential upcoming rate cuts were expected to influence Bitcoin price’s trajectory and the overall digital asset market.
On X, Scott Melker, also known as the Wolf of All Streets, shared a post regarding the Fed Chair’s remarks today and suggested that the market should get ready for more money-printing.
Fed Chair Indicates Upcoming Rate Cuts in September
During the Jackson Hole Economic Symposium, the Federal Reserve Chair Jerome Powell said that “the time has come” for rate cuts, as reported by The Wall Street Journal.
During his speech, he said that the pace of monetary easing in the upcoming months will depend on a balance of risks across the US economy.
According to the same notes, he grew even more confident that inflation would return to the central bank’s 2% target. Folowing months of slowly rising unemployment, he also mentioned economists’ warning that the labor market is posing an increasing threat to the economy compared to price pressures.
Powell said that the Fed doesn’t seek or welcome further cooling in labor market conditions.
This speech was his most watched one of the year at Jackson Hole, where central banks have their annual meetings. Powell did not detail the size of the cut, but he did emphasize the Fed’s readiness to adjust policy to protect that labor market and keep the US economy on track for a soft landing.
Investors are now waiting for the September meeting to see how aggressive the Fed will be in reducing rates.
Apart from the crypto market, traditional stocks rallied as well.
Major stock indexes surged, with the Nasdaq Composite leading the pack. Treasuries rallied as well, pushing down yields, while the Japanese Yen strengthened against the US dollar.
