Bitcoin Hits $116K as Fed’s Powell Signals Rate Cut

13 hours ago

Newsroom

Why is Bitcoin skyrocketing to over $116K?

What role does the Fed play in Bitcoin's price surge?

Could Bitcoin's surge signal a shift in global financial trends?

Bitcoin Hits $116K as Fed’s Powell Signals Rate Cut — Image source: Unblock Media

Bitcoin surged to $116,000 after Federal Reserve Chair Powell hinted at a September rate cut.
Powell's Jackson Hole speech spurred a rebound in risk assets and weakened the U.S. dollar.

On August 22, 2025, Cointelegraph reported that Bitcoin surged to $116,000 following a speech by Federal Reserve Chair Jerome Powell at the Jackson Hole economic symposium. Powell's remarks, interpreted as dovish, signaled the likelihood of a rate cut at the Federal Reserve's upcoming September meeting. The news prompted Bitcoin to rise over 3% within minutes, recovering from a six-week low of $111,658.

The immediate market reaction extended beyond Bitcoin, with a broad rally observed in other risk assets and cryptocurrencies. Simultaneously, the U.S. dollar weakened, reflecting a shift in investor sentiment toward riskier alternatives. According to analysts, Bitcoin's swift recovery underscored its sensitivity to central bank policy changes and broader market conditions.

In his speech, Powell indicated that the Federal Reserve might need to adjust its monetary stance to ensure economic stability, providing markets with a clear signal of a potential rate cut. As noted by trading resource The Kobeissi Letter, such a cut, possibly by 25 basis points, traditionally diminishes the appeal of the U.S. dollar and boosts demand for alternative assets like Bitcoin.

The market's response highlights the strong correlation between monetary policy adjustments and the performance of risk assets. Data from CME Group’s FedWatch Tool showed heightened market expectations for a more accommodative policy stance, significantly shaping investor behavior. This shift added bullish momentum to Bitcoin, along with similar movements in equities and other risk-driven investments.

As of August 22, 2025, 15:08 UTC, Bitcoin (BTC) is trading at $116,538.71, reflecting a 3.05% increase in price over the past 24 hours. Additionally, the 24-hour trading volume rose by 17.90%, according to the latest market survey.