Bitcoin Price Rises as Fed Chair Jerome Powell Signals Rate Cut Is Imminent – Decrypt

Bitcoin prices rose on Friday as Federal Reserve Chairman Jerome Powell prepared to cut interest rates in the coming months, signaling that the U.S. central bank is comfortable with keeping inflation in check but is paying more attention to a weakening and expanding labor market.

“The direction to move is clear, and the timing and pace of rate cuts will depend on upcoming data, the changing outlook and the balance of risks,” he said in a keynote speech at this year’s Jackson Hole Economic Policy Symposium in Wyoming.

Bitcoin prices had risen 1.8% in the past day to $61,500 at press time, briefly surpassing $62,000 following Powell’s comments, while Ethereum and Solana prices rose 2.7% and 2.1%, to $2,675 and $145, respectively.

At the moment, the market is confident that the Fed, which has kept its benchmark interest rate unchanged since July 2023, will ease its anti-inflation measures. At the time of writing, traders are pricing in a 32% chance of the Fed cutting interest rates by 0.50% in September, and a 67% chance of a 0.25% cut. CME FedWatch.

Editor’s note: This is breaking news and will be updated with additional details.