Bitcoin Price Surges to USD 65,000 Following Federal Reserve Chairman’s Comments on Rate Cuts

Cryptonews John Brightwater August 25, 2024

Bitcoin Price Surges to USD 65,000 Following Federal Reserve Chairman’s Comments on Rate Cuts

In a noteworthy development within the cryptocurrency market, the price of Bitcoin experienced a significant escalation, reaching approximately USD 65,000 early on Saturday. This surge was triggered by remarks made by Jerome Powell, the Chair of the United States Federal Reserve, who indicated that an interest rate cut might be imminent at the central bank’s forthcoming September meeting. Bitcoin’s value peaked at USD 64,845 on Friday, largely propelled by expectations surrounding Mr. Powell’s address at the Jackson Hole symposium held in Wyoming. As of 6:30 p.m. EDT (22:30 GMT) on Friday, Bitcoin was trading at around USD 64,653, reflecting a daily increase of 6.8 percent.

Furthermore, Ethereum, recognized as the largest altcoin by market capitalization, also witnessed a substantial upturn, trading at USD 2,788 with a daily gain of 6.2 percent. The aggregate market capitalization of cryptocurrencies soared to USD 2.27 trillion, indicating a daily rise of 5.79 percent, as reported by CoinMarketCap. Bitcoin’s market dominance rose to 56.1 percent, whereas Ethereum maintained a steady market share of 14.7 percent. Notably, several altcoins exhibited remarkable gains, with certain assets appreciating by more than 20 percent within the day.

In his address, Mr. Powell expressed growing confidence that inflation is on a sustainable trajectory back to the target rate of 2 percent, suggesting that the “time has come” for a recalibration of monetary policy. He indicated that the future direction of rate cuts is becoming more discernible, although the exact timing and pace will be contingent on incoming data, evolving economic conditions, and risk assessments.

Earlier in August, the cryptocurrency market had encountered a sharp downturn amidst recession concerns, with Bitcoin plunging to lows of USD 49,551 on August 5. However, Mr. Powell’s recent statements have invigorated a rebound in the prices of digital assets.