Bitcoin surged to $116,000 on Friday after comments from U.S. Federal Reserve Chair Jerome Powell hinted at an upcoming shift in monetary policy.
Fed remarks spark Bitcoin rebound
Data from TradingView showed sharp volatility in BTC as Powell spoke at the annual Jackson Hole symposium, a key venue for revealing policy outlooks.
Powell noted that current labor market and inflation conditions “may warrant adjusting” the Fed’s stance, signaling that rate cuts could be on the horizon.
Markets reacted instantly — risk assets, including crypto, climbed higher while the U.S. dollar weakened. Bitcoin rose more than 3%, rebounding from local lows of $111,658, its weakest level since July 10.
“Strong bounce from range lows after Powell’s dovish tone. Expect more volatility ahead,” trader Daan Crypto Trades commented on X.
Analyst Scott Melker, also known as the “Wolf of All Streets,” highlighted a bullish divergence:
“BTC showing oversold RSI signals on multiple timeframes near the $112K support. With news aligning, setups like this get interesting.”
Traders eye September Fed decision
Powell’s remarks strengthened expectations that the Fed could lower rates at its September meeting.
“It looks like Powell is preparing markets for a rate cut next month,” wrote The Kobeissi Letter, suggesting a 25-basis-point reduction. CME Group’s FedWatch Tool reflected similar sentiment, showing growing market confidence in easing.
This marks a sharp turn from earlier uncertainty when Powell maintained a hawkish stance amid inflation pressures and concerns over U.S. trade tariffs.
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