Key factors:
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Bitcoin returns to $116,000 after gaining over 2% in minutes because of “dovish” feedback from Fed Chair Jerome Powell.
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Powell’s Jackson Hole speech cemented the percentages of an interest-rate reduce subsequent month.
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Risk property and crypto rose instantly, whereas US greenback power fell.
Bitcoin (BTC) spiked to $116,000 on Friday because the US Federal Reserve hinted that it could reduce rates of interest.
Bitcoin value rebounds from 6-week lows on Fed
Data from Cointelegraph Markets Pro and TradingView adopted risky BTC value motion as Fed Chair Jerome Powell delivered a coverage speech.
Powell took to the stage on the annual Jackson Hole financial symposium — historically a possibility to trace at upcoming coverage strikes.
The present state of affairs with inflation and the labor market, he mentioned, “might warrant adjusting” the Fed’s financial coverage stance.
Markets instantly reacted, with crypto and danger property leaping whereas US greenback power tumbled.
BTC/USD gained over 3%, serving to elevate the pair from native lows of $111,658 — its lowest degree since July 10.
“Good bounce from the vary low sweep on the again of a dovish Powell. Going to stay risky for the remainder of the day,” in style dealer Daan Crypto Trades wrote in a response on X.
Commentator TheKingfisher famous that the worth had taken bid liquidity throughout the journey to the lows.
$BTC High leverage liquidation map from this morning (5:40 in the past) cleared 🎯 pic.twitter.com/22hlJiCMyV
— TheKingfisher (@kingfisher_btc) August 22, 2025
“Bitcoin is exhibiting bullish divergence (once more) with oversold RSI on the 4-hour… and 6-hour. Maybe the 12-hour. Maybe the day by day. All at key $112K help,” dealer, analyst and podcast host Scott Melker, referred to as the “Wolf of All Streets,” continued simply earlier than Powell started talking.
“Anything can occur, however all the time fascinating when very sturdy indicators seem in alignment with information occasions.”
Powell “setting the stage” for brand new fee reduce
Considering the implications of Powell’s alternative of phrases, market individuals had been skewed in favor of the Fed chopping rates of interest at its upcoming assembly in September.
Related: Bitcoin received’t go beneath $100K ‘this cycle’ as $145K goal stays: Analyst
“It seems Fed Chair Powell is setting the stage for a September fee reduce,” buying and selling useful resource The Kobeissi Letter summarized.
Kobeissi advised that the Fed would reduce by 25 foundation factors, a view echoed by market expectations from CME Group’s FedWatch Tool.
As Cointelegraph reported, uncertainty had beforehand reigned over the September final result as Powell caught by his hawkish tone amid rising inflationary cues and uncertainty over US commerce tariffs.
This article doesn’t comprise funding recommendation or suggestions. Every funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.
