On Friday, the cryptocurrency market saw a notable uptick, with Ethereum (ETH) and Bitcoin (BTC) spearheading the growth and rekindling the positive trend observed in the previous week, which had driven it to unprecedented highs.
Among significant updates, the market’s top altcoin surged past the $4,700 threshold while achieving double-digit increases and moving closer to the $4,878 record highs it attained during the last crypto bull run four years ago.
Following an extended period of consolidation and decline, ETH’s recent advancements signify renewed market optimism, particularly after remarks made by Federal Reserve (Fed) Chair Jerome Powell.
Ethereum, XRP, And BNB Leap Forward
During his address at the Jackson Hole Economic Symposium, Powell suggested that upcoming rate cuts might be a possibility, a sentiment that often benefits assets such as Bitcoin and altcoins.
Decreased interest rates make investing in stocks and digital currencies more appealing when compared to conventional interest-yielding alternatives like bonds. Furthermore, lower rates typically devalue the dollar, which enhances the lure of cryptocurrencies.
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The positive sentiment in the market extended beyond Bitcoin and Ethereum; various altcoins also experienced considerable price hikes. XRP climbed by 5%, Solana (SOL) recorded a 4% increase, and Binance Coin (BNB) surged by 8%, surpassing the $882 mark, which now represents a resistance level for the asset.
Manuel Villegas, an analyst at Julius Baer, pointed out in a report that the relationship between cryptocurrencies and equities is currently robust.
He noted that market sentiment is likely to respond keenly to remarks from the Jackson Hole gathering of monetary leaders and any follow-up actions from fiscal authorities.
A Bullish Q4 on the Horizon?
Experts on the social media platform X (formerly Twitter) shared their perspectives on the implications of Powell’s comments, pondering potential outcomes for the wider crypto market.
Doctor Profit remarked that Powell’s announcement was highly anticipated by both stock and crypto markets, implying that the likelihood of upcoming rate cuts had already been factored into the market.
He warned that a “sell the news” reaction might follow, as traders could take advantage of the gains made in expectation of these announcements.
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In a post on social media, Lark Davis asserted that the Federal Reserve Chair’s comments have effectively laid the groundwork for potential rate cuts as soon as September, suggesting that the fourth quarter could prove to be “extremely bullish.”
As of this moment, Ethereum is priced at $4,740, performing the best of the day among leading cryptocurrencies, showcasing a notable 13% increase during today’s trading session.
Meanwhile, Bitcoin remains significantly below the record $124,000 level reached last week, despite a 4% increase in the past 24 hours. Currently trading at $116,000, Bitcoin is still 6% off its all-time high.
Featured image from DALL-E, chart from TradingView.com
