Author: Imelda

Bitcoin Surges Past $117K Amid Fed Comments and Crypto Rally

Bitcoin jumped more than 4% on Friday, reaching above $117,000, as the entire crypto market rallied following new comments from the Federal Reserve.

Here’s what happened: Fed Chair Jerome Powell admitted that inflation is still an issue but also pointed out signs of weakness in the job market. This mix of concern and caution made investors think the Fed might ease up on interest rate hikes soon. As a result, riskier assets like cryptocurrencies became more attractive again.

Bitcoin’s price surged past the $116,000 level, which many traders see as a key support zone tied to monthly trends. This breakout sparked fresh optimism, although some experts warned that investor mood has been flip-flopping recently. Just a week ago, Bitcoin was trading around the same level during a period of uncertainty and fear.

Ethereum also saw a major price spike, climbing above $4,600 in a single hour—one of its biggest hourly gains ever. Technical analysts say Ethereum could soon break out of an eight-year-long downtrend against Bitcoin, which might boost its value even further.

Other altcoins followed the trend. XRP broke past the $3 mark, leading to speculation about potential new highs. Solana and Dogecoin also gained strongly, adding to the market-wide rally.

Even though Powell didn’t confirm any interest rate cuts, his acknowledgment of economic struggles was enough to bring investors back into crypto. Bitcoin is currently leading the charge, but whether this surge lasts will depend on future actions from the Fed and whether crypto markets can maintain momentum.

As of now, Bitcoin is trading at around $117,253, up 4.17% for the day.

Keywords: Bitcoin price surge, Ethereum rally, Federal Reserve policy, Jerome Powell comments, crypto market news, inflation concerns, labor market weakness, altcoin performance, XRP breakout, Solana gains, Dogecoin rise, macroeconomic impact on crypto.

Powell Signals Rate Cuts, Markets and Crypto Surge

**Fed Chair Jerome Powell Hints at Rate Cuts, Markets Celebrate**

Federal Reserve Chair Jerome Powell just gave both Wall Street and everyday investors something to cheer about. In a highly anticipated speech at the Fed’s annual Jackson Hole conference, Powell suggested that interest rate cuts could come as early as September. This marks a major shift in tone from the Fed, which had previously focused on keeping rates high to fight inflation.

Powell said the economic outlook and changing risks may soon justify a change in policy. In simple terms, the Fed is now leaning toward making borrowing cheaper — a move that could boost spending, investment, and financial markets.

**Markets React Instantly: Stocks, Crypto Soar**

Investors didn’t wait to react. Stocks surged following Powell’s remarks. The Dow Jones jumped 2%, hitting new record highs above 45,680. The S&P 500, tracked by the Vanguard S&P 500 ETF (VOO), rose 1.4%, while the Russell 2000 — which tracks smaller companies — shot up nearly 4%, its best day since April.

Bond yields dropped sharply as traders bet on a September interest rate cut. The 2-year Treasury yield fell by 10 basis points to 3.70%, reflecting growing confidence that the Fed will ease policy soon.

Meanwhile, the cryptocurrency market exploded higher as investors embraced the risk-on mood. Bitcoin (BTC) surged 3.5%. Ethereum (ETH), Solana (SOL), and Cardano (ADA) saw even bigger gains — all rising more than 10% on the day.

**Economists Now Expect Multiple Rate Cuts**

Top economists across Wall Street are now predicting more than just one rate cut. Many believe Powell’s comments were a clear signal that the Fed is ready to change direction.

Goldman Sachs’ chief economist Jan Hatzius expects a 25-basis-point cut in September, saying Powell’s speech matched their expectations. He added that with the job market cooling down, the Fed has enough reasons to begin cutting.

Jeffrey Roach of LPL Financial said Powell’s new focus on current economic data — rather than past inflation — is a welcome shift for markets. David Laut at Abound Financial agreed, noting that just one more weak jobs report could lock in a September cut.

Chris Zaccarelli from Northlight Asset Management called Powell’s speech unusually clear. “He didn’t say it outright, but it’s obvious the Fed is preparing to cut rates,” he explained. According to Zaccarelli, unless we get unexpectedly strong data soon, the Fed is very likely to act in September.

Paul Stanley at Granite Bay Wealth Management pointed out that while it’s still unclear whether the Fed will cut by 25 or 50 basis points, the fact that they’re even discussing rate cuts again is bullish news for stocks.

Ryan Sweet at Oxford Economics went even further, predicting two rate cuts before the end of the year — one in September and another before December. He believes Powell is now focusing more on supporting jobs and economic growth than fighting inflation.

Technical analyst Larry Tentarelli of Blue Chip Daily said this shift benefits specific sectors like homebuilders, small-cap stocks, and regional banks — all of which rallied after Powell’s speech. He believes this could signal a change in which types of stocks lead the market going forward.

**Why This Matters for Everyday People**

When the Fed cuts interest rates, it lowers costs across the board. Mortgages get cheaper, credit card interest rates fall, and businesses find it easier to borrow and grow. That usually leads to more spending, stronger job growth, and rising stock prices.

For regular investors, this shift in Fed policy could open up new opportunities. Sectors like housing, small caps, and regional banks tend to perform well when interest rates go down.

**Key Takeaways:**
– Jerome Powell hinted strongly at a September rate cut.
– Stock markets hit new highs; crypto markets surged even higher.
– Wall Street now expects multiple rate cuts before year-end.
– Lower interest rates make borrowing cheaper and often boost economic growth.
– Investors may want to watch housing, small-cap stocks, and banks for potential gains.

If you’ve been waiting for a sign to re-enter the market or reposition your portfolio, Powell may have just given it.

Markets Rally as Fed Signals Possible September Rate Cut

Stocks soared on Friday, wiping out the week’s earlier losses and pushing the Dow Jones Industrial Average to a new all-time high. This sharp rally came after Federal Reserve Chair Jerome Powell hinted that interest rate cuts are likely coming soon—possibly as early as September.

Powell’s comments surprised investors with a more “dovish” tone, meaning he showed more concern about the weakening job market than rising inflation. This shift in focus reassured markets that the Fed may start easing monetary policy even if inflation hasn’t dropped all the way to its target yet.

The S&P 500 jumped 1.5%, its biggest one-day gain since May. All major tech giants saw their stocks rise. Smaller companies, tracked by the Russell 2000 Index, surged nearly 4%. Bank stocks reached new highs, and even cryptocurrencies like Bitcoin and Ethereum saw big gains.

With Powell signaling that the Fed is likely to cut rates soon, traders increased bets on a September rate cut. Bond prices rose as yields dropped—especially for two-year Treasury notes, which saw a 10-basis-point decline. Meanwhile, the U.S. dollar weakened, making room for gains in other currencies like the euro and yen.

Powell stated that while inflation is still above target, the weakening labor market allows the Fed to be flexible. He emphasized that the central bank needs to consider both inflation and employment when deciding on interest rates.

Market analysts were quick to react. Krishna Guha of Evercore said Powell gave a clear green light for a September rate cut of 25 basis points. Chris Zaccarelli from Northlight Asset Management noted that Powell’s comments raised expectations so much that keeping rates unchanged would now be a surprise.

David Laut from Abound Financial added that although there’s still one more jobs report before the next Fed meeting, enough data already supports a rate cut. He expects stock markets to continue rising in the short term thanks to lower borrowing costs.

However, not everyone sees smooth sailing ahead. Bret Kenwell at eToro warned that cutting rates too early could reignite inflation, while cutting too late could harm the economy by worsening job losses. It’s a tough balancing act for the Fed.

Seema Shah of Principal Asset Management noted that while Powell’s speech was clearly leaning toward rate cuts, there’s no strong reason for a large 50-basis-point move. Doing so could send the wrong message to markets—suggesting political influence rather than data-driven decision-making.

Ellen Zentner from Morgan Stanley said it’s obvious that the Fed now sees job market weakness as a bigger threat than inflation. But she also pointed out that Powell reaffirmed the Fed’s 2% inflation goal, meaning they’re not completely letting inflation off the hook.

David Russell of TradeStation said Powell’s focus has clearly shifted from controlling prices to supporting jobs. He believes Powell wants to play it safe but still has time to adjust if new economic data changes the outlook before the September meeting.

In corporate news:

– Former President Donald Trump met with Intel CEO Lip-Bu Tan to finalize a deal giving the U.S. government nearly a 10% stake in the chipmaker.
– Apple is in early talks with Google about using its Gemini AI tech to improve Siri.
– Nvidia told suppliers to stop making components for its H20 AI chip.
– Meta Platforms agreed to spend at least $10 billion with Google Cloud and is hiring top AI talent from Apple.
– Boeing will begin formal talks with striking workers next week.
– Visa shut down its U.S. open-banking unit due to regulatory uncertainties.
– Ross Stores said rising inflation may boost demand for its discount products.
– Cenovus Energy plans to acquire MEG Energy for $5 billion to expand in Canada’s oil industry.

Market snapshot:

– The S&P 500 gained 1.5%
– Nasdaq 100 rose 1.5%
– Dow Jones climbed 1.9%
– Russell 2000 jumped 3.9%
– KBW Bank Index up 3.2%

Currency movements:

– U.S. Dollar Index dropped 0.8%
– Euro rose 1% to $1.1720
– British Pound rose 0.8% to $1.3518
– Japanese Yen rose 1% to 146.96 per dollar

Crypto rally:

– Bitcoin surged 3.8% to $116,657
– Ethereum jumped 14% to $4,835

Bond market:

– 10-year Treasury yield fell to 4.26%
– 2-year Treasury yield down to 3.69%
– 30-year Treasury yield dipped to 4.88%

Commodities:

– Oil (WTI) rose 0.5% to $63.82 per barrel
– Gold increased 1% to $3,372 per ounce

In summary, markets are now betting on lower interest rates coming soon, which is fueling optimism across stocks, bonds, and cryptocurrencies. But with more economic data on the way, investors will be watching closely for any signs that could change the Fed’s next move.