The crypto markets just got their jolt of adrenaline. After Fed Chair Jerome Powell dropped hints at Jackson Hole that fed cuts are imminent, digital-asset stocks took a breather. Experts saw a sharp uptick from $112,000 (PKR 3.17 crore) to more than $116,000 in a matter of hours, before settling down at $115,700 (PKR 3.28 crore).
Crypto-linked equities followed suit. MicroStrategy (MSTR) leapt 5%, while Coinbase (COIN) jumped nearly 7% as Wall Street’s appetite for risk assets suddenly came back to life.
If Bitcoin was the spark, Ethereum was the explosion. The world’s second-largest crypto soared nearly 14% to $4,789 (PKR 13.5 lac) before settling down to $4,727 (PKR 13.4 lac).
Not to be left behind, Solana, XRP, and Dogecoin all posted gains between 6% and 10%, signaling that this was not just a Bitcoin bounce, but a full-on altcoin party.
The CME FedWatch tool now puts the chances of a September rate cut at 87%, up from 75% before Powell’s remarks. That’s a dramatic shift in sentiment, one that pulled both crypto and stocks higher in tandem. The S&P 500 rallied 1.5%, while the Dow surged nearly 2% to record highs.
When interest rates fall, speculative assets shine and no asset class embodies speculation (and reward) like cryptocurrency. Powell’s acknowledgment of a weakening labor market gave traders the green light to bet on a softer Fed.
For crypto, that means one thing: momentum is back. After weeks of fear and red charts, Bitcoin, Ethereum, and the broader altcoin market may finally be entering their next bullish chapter.