The rebound came after Powell\u2019s speech at the annual Jackson Hole economic symposium on Friday, where he said that the current conditions in inflation and the labor market \u201cmay warrant adjusting\u201d the Fed\u2019s monetary policy stance<\/a>.<\/p>\n ETH is the \u201cmost rate-sensitive aspect of crypto\u201d<\/p>\n After Powell\u2019s speech, Bitcoin (BTC<\/a>) surged 5% to $117,300<\/a>, liquidating $379.88 million in shorts. Meanwhile, Ether (ETH<\/a>) reclaimed its 2021 all-time highs of $4,878, reaching as high as $4,851, representing an 11.51% increase over the 24 hours, according<\/a> to CoinMarketCap.<\/p>\n In an X post on the same day, Axie Infinity co-founder Jeffrey \u201cJiho\u201d Zirlin called<\/a> Ether the \u201cmost rate-sensitive aspect of crypto.\u201d<\/p>\n \u201cAs interest rates drop, the spread between what can be earned by depositing your stablecoins in DeFi vs. depositing your USD in a bank widens,\u201d he said.<\/p>\n According to the CME FedWatch Tool<\/a>, 75% of market participants anticipate a rate cut at the Sept. 17 Fed meeting. Trading resource The Kobeissi Letter\u00a0said<\/a>, \u201cIt appears Fed Chair Powell is setting the stage for a September rate cut.\u201d<\/p>\n Historically, Fed rate cuts increase liquidity<\/a> and make riskier assets like crypto more attractive.<\/p>\n Crypto market participants were expecting the surge<\/p>\n However, St. Louis Fed President Alberto Musalem told<\/a> Reuters on Friday that he still needs more time to decide whether he will support an interest rate cut. <\/p>\n \u201cI will be updating my outlook and balance of risks all the way up and until two days, three days before the meeting,\u201d he said.<\/p>\n Earlier in the week, several crypto market participants<\/a> anticipated a crypto market spike if Powell hinted at a rate cut.<\/p>\n Related: <\/strong>Bitcoin price breakout to $117K liquidates bears, opening door to fresh all-time highs<\/strong><\/a><\/p>\n Author Jason Williams said<\/a> on Wednesday, if Powell \u201ccomes in soft and learns that rate cuts are likely, we turbo rip.\u201d\u00a0<\/p>\n Crypto Banter trader Ran Neuner said<\/a> \u201cJackson Hole will shape crypto\u2019s direction moving forward,\u201d before adding,\u00a0\u201cTrump is pushing for a rate cut with good reason, but will Powell listen?\u201d<\/p>\n![\"Cryptocurrencies,](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/0198d5b0-0f5f-766e-b4d0-b4a9efd12b92.png\" "\\"\\"\/")
The Crypto Fear & Greed Index returned to Greed on Saturday after the Federal Reserve Chair Jerome Powell hinted at upcoming rate cuts. Source: alternative.me<\/a><\/p>\n