Crypto wrap Aug. 22: Bitcoin jumps to $117k and ETH gains 11% as Powell speech sparks rally
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Bitcoin price jumped over 3% to rise from around $113,000 to trade above $117,000, with the cryptocurrency market’s reaction to remarks by Federal Reserve chair Jerome Powell sent risk assets skyrocketing.
After declining amid sell-off pressure, the global crypto market cap jumped 4% to reclaim the $4 trillion mark. Top altcoins Ethereum, XRP and BNB surged as did stocks across Wall Street.
Fed pivot sparks crypto bounce
Federal Reserve Chair Jerome Powell delivered his much anticipated speech at the Jackson Hole Economic Symposium on Friday, and as predicted, crypto and stocks pumped amid his hint of coming interest rate cuts.
Here’s what top economist Mohamed El-Erian said about the markets’ sharp rebound.
Bitcoin bounces above $117k
Powell’s optimistic note at the symposium saw Bitcoin price rebound from near $113k to trade above $117k at the time of writing.
The spike included a 4% surge in BTC price and over 25% increase in daily volume to over $75 billion.
The gains came after BTC pulled back from its peak of $124k this month. Now analysts say the benchmark digital asset could rally to a new all-time high in the coming months.
However, the sharp gains suggest Bitcoin remains largely correlated to macro events and other factors.
Ethereum, XRP rise
As cryptocurrency markets soared following Jerome Powell’s Jackson Hole speech, Ethereum (ETH) led the charge for altcoins.
Ethereum bulls saw the top altcoin jump more than 11% shortly after Powell’s remarks to surpass $4,700.
Institutional demand led by ETH treasury companies and optimism for a dovish Fed policy helped ETH move towards a new all-time high.
The upbeat mood also cascaded to XRP, which climbed above $3.04, a 5% gain that puts the Ripple token above the key level.
BNB hits new all-time high
Binance’s BNB (BNB) coin also soared as buyers pushed it 4% higher to break to a new all-time high above $882.
The gains extend BNB’s recent rally that has seen it become one of the top performers in the top 100 coins by market cap. Bulls may eye the $1,000 in the coming days.
However, as with all the other cryptocurrencies that shot up amid Powell’s remarks, there’s a possibility of a sell the news outcome.
This is because what Powell noted in his speech has been highly anticipated and a September rate cut is priced in already.
If this happens, many of the altcoins will likely pare gains before marching higher in the coming quarter.
The post Crypto wrap Aug. 22: Bitcoin jumps to $117k and ETH gains 11% as Powell speech sparks rally appeared first on Invezz
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