Bitcoin and Ether Rebound Ahead of Anticipated Fed Rate Cut
Bitcoin (BTC) and ether (ETH) regained momentum late Friday, after a week dominated by altcoin gains. BTC rose 2% to $116,600, while ETH climbed 5% to $4,650, both reaching their highest levels since mid-August volatility following Fed Chair Jerome Powell’s Jackson Hole address.
At Jackson Hole, Powell shifted from a hawkish to dovish tone, highlighting labor market weakness over persistent inflation. Markets quickly priced in a September rate cut, leaving only the size — 25 or 50 basis points — undecided.
After the speech, BTC surged from roughly $112,000 to over $117,000, while ETH jumped more than 16% in under 48 hours, briefly approaching $5,000. Gains later retraced, with BTC falling to $107,000 and ETH returning near pre-speech levels by late August.
Traders widely expect next week’s Fed meeting to deliver the first rate cut in a year, lowering the benchmark funds rate by 25 basis points to 4.00%–4.25%. Meanwhile, altcoins like solana (SOL) and dogecoin (DOGE) have led recent momentum, rising 17% and 25% over the past week amid ETF anticipation and new crypto treasury activity.
