Jerome Powell indicated that September rate cuts may be possible, prompting large gains in cryptocurrencies and equities. Ethereum rose about 13% to over $4,814, approaching its November 2021 all-time high of $4,878. Bitcoin climbed roughly 4% to around $117,000. Total cryptocurrency market capitalization increased about 6% to more than $4.1 trillion, while the S&P 500 gained 1.5% that morning. Traders moved quickly to price in a high probability of a September rate cut after Powell's remarks. Recent mixed inflation data had previously driven market volatility as investors weighed consumer and producer price measures against Fed policy expectations.
Jerome Powell set off a Friday boom in the crypto markets. After the chair of the U.S. Federal Reserve indicated Friday morning that September rate cuts may be in the cards, Ethereum, the world's second largest cryptocurrency, soared about 13% to more than $4,814, according to data from Binance. That is only slightly below its all-time high of $4,878 in November 2021. Bitcoin, the world's largest cryptocurrency, is also up.
The total market capitalization of all cryptocurrencies has risen 6% to more than $4.1 trillion, mirroring the broader surge in the stock market. The S&P 500 is up 1.5% since trading began Friday morning. 'The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,' Powell said, during his speech at a conference in Jackson Hole, Wyoming.
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