Key factors:
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Bitcoin returns to $116,000 after gaining over 2% in minutes due to “dovish” feedback from Fed Chair Jerome Powell.
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Powell’s Jackson Gap speech cemented the chances of an interest-rate reduce subsequent month.
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Threat property and crypto rose instantly, whereas US greenback power fell.
Bitcoin (BTC) spiked to $116,000 on Friday because the US Federal Reserve hinted that it could reduce rates of interest.
Bitcoin worth rebounds from 6-week lows on Fed
Knowledge from Cointelegraph Markets Professional and TradingView adopted risky BTC worth motion as Fed Chair Jerome Powell delivered a coverage speech.
Powell took to the stage on the annual Jackson Gap financial symposium — historically a chance to trace at upcoming coverage strikes.
The present scenario with inflation and the labor market, he stated, “could warrant adjusting” the Fed’s financial coverage stance.
Markets instantly reacted, with crypto and threat property leaping whereas US greenback power tumbled.
BTC/USD gained over 3%, serving to carry the pair from native lows of $111,658 — its lowest degree since July 10.
“Good bounce from the vary low sweep on the again of a dovish Powell. Going to stay risky for the remainder of the day,” widespread dealer Daan Crypto Trades wrote in a response on X.
Commentator TheKingfisher famous that the worth had taken bid liquidity through the journey to the lows.
$BTC Excessive leverage liquidation map from this morning (5:40 in the past) cleared 🎯 pic.twitter.com/22hlJiCMyV
— TheKingfisher (@kingfisher_btc) August 22, 2025
“Bitcoin is exhibiting bullish divergence (once more) with oversold RSI on the 4-hour… and 6-hour. Perhaps the 12-hour. Perhaps the every day. All at key $112K help,” dealer, analyst and podcast host Scott Melker, often called the “Wolf of All Streets,” continued simply earlier than Powell started talking.
“Something can occur, however all the time attention-grabbing when very sturdy indicators seem in alignment with information occasions.”
Powell “setting the stage” for brand spanking new charge reduce
Contemplating the implications of Powell’s selection of phrases, market members had been skewed in favor of the Fed reducing rates of interest at its upcoming assembly in September.
Associated: Bitcoin received’t go beneath $100K ‘this cycle’ as $145K goal stays: Analyst
“It seems Fed Chair Powell is setting the stage for a September charge reduce,” buying and selling useful resource The Kobeissi Letter summarized.
Kobeissi instructed that the Fed would reduce by 25 foundation factors, a view echoed by market expectations from CME Group’s FedWatch Device.
As Cointelegraph reported, uncertainty had beforehand reigned over the September consequence as Powell caught by his hawkish tone amid rising inflationary cues and uncertainty over US commerce tariffs.
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