Investors Chase Fed Signals as Crypto Market Balances on a Knife’s Edge
Speculations about potential rate cuts by the Federal Reserve have intensified in the crypto market, with investors closely monitoring developments following a recent speech by Fed Chair Jerome Powell at the Jackson Hole symposium. Powell’s comments, which hinted at a “shifting balance of risks that may warrant policy adjustments,” have been widely interpreted as a dovish signal, fueling optimism across financial markets, including cryptocurrency. The market has responded with a rally, with Bitcoin consolidating near $117,000 and Ethereum inching closer to its all-time high of $4,866 [2].
The crypto market’s performance has become increasingly correlated with traditional financial assets. For instance, the S&P 500 recently hit a…
