In a turn of events that has the cryptocurrency world buzzing, Bitcoin and Ethereum spearheaded a market rally on Friday, August 22, 2025, following a speech by Federal Reserve Chair Jerome Powell. His remarks at the Jackson Hole Economic Symposium sparked optimism, suggesting potential rate cuts that have traditionally been favorable for digital assets. Ethereum surged past $4,700, edging closer to its all-time high of $4,878, while Bitcoin rose 4% to $116,000, though still shy of its recent record.
The Powell Effect
Jerome Powell’s speech hinted at future interest rate reductions, a move typically seen as a boon for both equity and crypto markets. Lower rates tend to diminish the appeal of traditional investments like bonds, driving investors toward riskier assets such as cryptocurrencies. Manuel Villegas from Julius Baer highlighted that the correlation between equities and cryptocurrencies is notably strong right now. “The market is hypersensitive to any statements from monetary authorities,” he observed, suggesting that Powell’s comments were pivotal for the recent surge. For further insights, see Ethereum, Bitcoin Spike After Powell Signals Interest Rate Cut.
Altcoins Riding the Wave
It wasn’t just Bitcoin and Ethereum enjoying the upswing. XRP climbed 5%, Solana added 4%, and Binance Coin (BNB) broke new ground, soaring past $882, setting this as a potential resistance level. BNB’s impressive 8% rise underscores the altcoin market‘s responsiveness to macroeconomic cues.
On X (formerly Twitter), market experts provided their takes. Doctor Profit remarked on the anticipated nature of Powell’s announcement, hinting that the market might have already factored in these potential rate cuts. He warned of the possibility of a “sell the news” scenario, where traders might look to cash in on gains from the recent surge.
A Bullish Fourth Quarter?
With Ethereum leading the day’s performance, climbing 13% in a single session, there’s speculation about what lies ahead. Lark Davis, a well-known crypto commentator, suggested that the Federal Reserve Chair’s comments could pave the way for rate reductions as early as September. This sets the stage for a potentially bullish close to 2025, with Q4 possibly yielding significant gains for the crypto market. This development aligns with previous insights discussed in Bitcoin, Ethereum Rise After Fed Minutes Shed Light on Rate Cut Dissent.
However, there are always questions about the sustainability of such rallies. While Ethereum eyes new heights, Bitcoin’s journey to reclaim its $124,000 high remains uncertain, with its current position still 6% below that peak.
Historical Context and Market Trends
Looking back, the cryptocurrency market has experienced similar patterns of consolidation and breakout. The last major bull cycle four years ago saw Ethereum reaching its previous high amid a flurry of institutional interest and technological advancements. This time, macroeconomic factors seem to be driving the momentum, with Powell’s remarks acting as a catalyst.
Conclusion
As we move forward, the crypto market’s trajectory remains inextricably linked to economic policy and investor sentiment. While the current bullish trend has market participants optimistic, the future remains a landscape of possibilities and uncertainties. Will the anticipated rate cuts materialize, and if so, how will they shape the crypto ecosystem? Only time will tell as we approach the tail end of 2025.
Source
This article is based on: Bitcoin, Ethereum, XRP, BNB On The Rise Following Powell’s Fed Speech
Further Reading
Deepen your understanding with these related articles:
- Crypto sentiment returns to Greed as Bitcoin and Ether spike on Fed speech
- Crypto Booms as Fed Goes Dovish: Here’s What It Means for Ethereum, Solana and Dogecoin
- OKB Defies Altcoin Crash, Bitcoin Slips to $112K as Markets Brace for Powell Speech: Your Weekly Recap
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
