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 Gap speech cemented the percentages of an interest-rate minimize subsequent month.
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Danger belongings and crypto rose instantly, whereas US greenback energy fell.
Bitcoin (BTC) spiked to $116,000 on Friday because the US Federal Reserve hinted that it might minimize rates of interest.
Bitcoin worth rebounds from 6-week lows on Fed
Information from Cointelegraph Markets Pro and TradingView adopted risky BTC worth motion as Fed Chair Jerome Powell delivered a coverage speech.
Powell took to the stage on the annual Jackson Gap financial symposium — historically a possibility to trace at upcoming coverage strikes.
The present state of affairs with inflation and the labor market, he stated, “might warrant adjusting” the Fed’s financial coverage stance.
Markets instantly reacted, with crypto and threat belongings leaping whereas US greenback energy tumbled.
BTC/USD gained over 3%, serving to carry 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,” widespread dealer Daan Crypto Trades wrote in a response on X.
Commentator TheKingfisher famous that the value had taken bid liquidity through the journey to the lows.
$BTC Excessive leverage liquidation map from this morning (5:40 in the past) cleared 🎯 pic.twitter.com/22hlJiCMyV
— TheKingfisher (@kingfisher_btc) August 22, 2025
“Bitcoin is displaying bullish divergence (once more) with oversold RSI on the 4-hour… and 6-hour. Perhaps the 12-hour. Perhaps the day by day. All at key $112K assist,” dealer, analyst and podcast host Scott Melker, often known as the “Wolf of All Streets,” continued simply earlier than Powell started talking.
“Something can occur, however at all times fascinating when very robust indicators seem in alignment with information occasions.”
Powell “setting the stage” for brand new fee minimize
Contemplating the implications of Powell’s alternative of phrases, market members have been skewed in favor of the Fed chopping rates of interest at its upcoming assembly in September.
Associated: Bitcoin won’t go below $100K ‘this cycle’ as $145K target remains: Analyst
“It seems Fed Chair Powell is setting the stage for a September fee minimize,” buying and selling useful resource The Kobeissi Letter summarized.
Kobeissi advised that the Fed would minimize 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 consequence as Powell caught by his hawkish tone amid rising inflationary cues and uncertainty over US commerce tariffs.
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