#bitcoin $BTC

Cryptocurrencies rally after Powell remarks

Bitcoin and other major cryptocurrencies rose on Friday, recovering earlier losses after Federal Reserve Chairman Jerome Powell paved the way for interest rate cuts to begin in September.

Speaking at the annual high-level gathering of global central bankers in Jackson Hole, Wyoming, Powell said he felt more confident about controlling inflation after it peaked at a four-decade high in 2022.

Although markets had expected Powell to hint at a rate cut at the Fed’s September meeting, his comments may have been more dovish than anticipated

Immediately after his speech, bitcoin jumped more than 1.5%, reaching $61,900 after briefly rising above $62,000. Meanwhile, Ethereum rose 2.9% to $2,685, Solana gained 2.4% to $147, and Polkadot gained 2.7% on the day. Traditional markets also saw strong gains with the Nasdaq up 1.7%, the S&P 500 up 1.2%, and gold up 1%. Furthermore, the yield on the 10-year Treasury note fell five basis points to 3.80%, and the dollar index fell by 0.6%.