Bitcoin and Crypto Stocks Surge as Powell Signals Possible Rate Cuts

The crypto market witnessed a powerful rally after Fed Chair Jerome Powell hinted at potential rate cuts during his speech at Jackson Hole. Following his remarks, Bitcoin surged from $112,000 (PKR 3.17 crore) to over $116,000 (PKR 3.28 crore) within hours before easing slightly to $115,700.

Crypto-linked equities mirrored the momentum. MicroStrategy (MSTR) climbed 5%, while Coinbase (COIN) jumped nearly 7%, as investors’ appetite for risk assets surged once again.

BTC, ETH Lead the Charge, Altcoins Join the Rally

Bitcoin set the stage, but Ethereum stole the spotlight with a 14% spike to $4,789 (PKR 13.5 lac) before stabilizing at $4,727 (PKR 13.4 lac). Altcoins also rode the wave—Solana, XRP, and Dogecoin each gained between 6% and 10%, marking a broad-based market revival.

Traders Bet on Fed Cuts

The CME FedWatch tool now shows an 87% probability of a September rate cut, up from 75% before Powell’s comments. This sharp rise in expectations lifted both crypto and traditional markets, with the S&P 500 up 1.5% and the Dow Jones jumping nearly 2% to record highs.

Lower interest rates typically boost speculative assets, and few embody speculation and high rewards like cryptocurrency. Powell’s recognition of a weakening labor market gave traders confidence to lean into risk, sparking a strong comeback.

For crypto, the message is clear: momentum is back, and Bitcoin, Ethereum, and altcoins may be entering their next bullish phase.