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Bitcoin Soars to $116K After Powell Hints at September Rate Cut

Bitcoin Surges to $116,000 as Fed Signals Possible September Rate Cut

  • Bitcoin surged to $116,000 after the U.S. Federal Reserve signaled a possible interest rate cut.
  • Fed Chair Jerome Powell made comments at the Jackson Hole symposium that raised expectations for a rate cut in September.
  • Risk assets, including cryptocurrencies, climbed as the U.S. dollar lost strength.
  • Market analysts observed Bitcoin rebounding from six-week lows and showing signs of strong technical support.
  • Market tools indicate strong sentiment for a 0.25% interest rate cut at the Fed’s upcoming meeting.

On Friday, Bitcoin recovered sharply, reaching $116,000 after the U.S. Federal Reserve suggested a change in monetary policy. This price increase happened soon after Fed Chair Jerome Powell spoke at the annual Jackson Hole economic symposium, raising the likelihood of lower interest rates as early as next month.

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According to data from Cointelegraph Markets Pro and TradingView, Bitcoin jumped over 3% in minutes, moving away from a recent low of $111,658. Powell said the state of inflation and the job market “may warrant adjusting” the Fed’s approach to interest rates.

Major risk assets and cryptocurrencies rose immediately after Powell’s speech, while the U.S. dollar slipped. Daan Crypto Trades, a market analyst, wrote on X that there was a “good bounce from the range low sweep on the back of a dovish Powell.” Analyst Scott Melker pointed to oversold signals in charts, stating, “Anything can happen, but always interesting when very strong signals appear in alignment with news events.”

Market observers, including The Kobeissi Letter, said Powell was “setting the stage for a September rate cut.” Tools like the CME Group’s FedWatch Tool showed rising expectations for a 0.25% rate reduction at the upcoming meeting.

Previously, investors were uncertain about the Fed’s direction due to inflation and trade policy signals. Technical trading indicators also suggested Bitcoin was at key support levels.

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All investment and trading activity carries risk, and individuals should conduct their own research before making financial decisions.

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