Bitcoin News

Breaking: Jerome Powell Signals Fed Rate Cut At Jackson Hole, BTC Price Spikes

Fed Chair Jerome Powell has indicated a Fed rate cut might happen at the Jackson Hole conference, sparking a rise in the BTC price.
Published by
Breaking: Jerome Powell Signals Fed Rate Cut At Jackson Hole, BTC Price Spikes

Highlights

  • Jerome Powell highlighted the growing risk in the labor market, which may warrant a rate cut.
  • He admitted that effects of tariffs on inflation may not happen as they earlier expected.
  • The BTC price broke above $116,000 on the back of the news.

In a massive development for the crypto market, Fed Chair Jerome Powell suggested that they may have to make a rate cut at the September FOMC meeting during his Jackson Hole speech. This has led to a massive spike in the BTC price, with other crypto assets rising on the back of the news.

Advertisement

Jerome Powell Suggests A Fed Rate Cut At September FOMC Meeting

While giving his opening remarks at the Jackson Hole Conference, the Fed Chair stated that the shifting balance of risks may warrant an adjustment of monetary policy. This indicates his openness towards a rate cut at the September FOMC meeting.

The Fed Chair further alluded to the labor market and how the downside risks to employment are on the rise. He further remarked that labor supply has softened in line with demand. Jerome Powell noted that this development has sharply lowered the “breakeven” rate of job creation needed to hold the unemployment rate constant.

Basically, the Fed Chair suggested that the recent job data indicate that the labor market weakening is worse than they envisaged. The July data showed that nonfarm payrolls rose to 73,000, lower than expectations of 147,000. Meanwhile, the May and June data were revised downwards from 144,000 and 147,000, respectively, to 19,000 and 14,000.

Jerome Powell suggested that they can no longer ignore the downside risks to employment. This is contrary to what the FOMC minutes showed, with the Committee indicating that upside risks to inflation were their priority over the downside risks to employment.

The Fed Chair also mentioned that the Trump tariffs are beginning to push prices higher and that they expect the effects of these tariffs to accumulate over the coming months, with high uncertainty about timing and amounts. However, he raised the possibility that the tariffs’ effects might not last, rather than being an ongoing inflation problem.

Advertisement

BTC Price Rallies Following The Fed Chair’s Speech

Jerome Powell’s Jackson Hole speech has provided a massive boost for the crypto market, with the Bitcoin price rising on the back of the Fed Chair’s comments. TradingView data shows that the flagship crypto is currently trading above $116,000, up from an intraday low of around $112,000.

Source: TradingView; BTC Daily Chart

As CoinGape had reported earlier, the crypto market had crashed as investors were pricing in a hawkish stance from the Fed Chair due to the rising inflation. This bearish sentiment had begun last week following the U.S. PPI data release, which showed that inflation rose to 3.3%, year-on-year (YoY), last month.

However, Jerome Powell’s signal of a Fed rate cut has now provided renewed bullish momentum for Bitcoin and other crypto assets. A cut boosts risk-on sentiment and could inject more liquidity into these risk assets.

CME FedWatch data shows that the odds of a 25 basis points (bps) September rate cut have jumped to 89.2%. As CoinGape reported, these odds had dropped from as high as 99% last week to as low as 71% as of yesterday.

Source: CME FedWatch
Advertisement

Share
Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

REX-Osprey Files For ADA, HYPE, XLM, SUI ETFs as Crypto ETF Frenzy Heats Up

REX Shares and Osprey Funds have filed for 21 single-asset crypto exchange-traded funds (ETFs) with…

October 4, 2025
  • Cryptocurrency Exchange Reviews

ChangeNOW’s Quiet Power Play in Helping Crypto Businesses

When most people think of crypto platforms, their minds jump to consumer-facing exchanges with bold…

October 3, 2025
  • Bitcoin News

Standard Chartered Sees Bitcoin Soaring to $200,000 by Year-End on ETF Boom

Standard Chartered believes Bitcoin (BTC) could reach a record high by the end of 2025.…

October 3, 2025
  • Bitcoin News

Walmart’s OnePay App to add Bitcoin and Ethereum trading

Walmart's OnePay App is the latest company to jump on the crypto wave, with plans…

October 3, 2025
  • 24/7 Cryptocurrency News

Tech Giant Samsung Taps Coinbase To Provide Crypto Access, Driving Adoption

Tech giant Samsung has partnered with Coinbase to offer crypto services to its 75 million…

October 3, 2025
  • 24/7 Cryptocurrency News

Bitget Joins UNICEF Game Jam To Train 300,000 Youths In Blockchain

Bitget has announced support for UNICEF’s first global Game Jam, a 40-day virtual hackathon across…

October 3, 2025