Powell’s dovish remarks at Jackson Hole signaled possible U.S. interest-rate cuts, sparking a crypto market rally that pushed the total crypto market cap above $4 trillion and sent Bitcoin and Ethereum to fresh highs, boosting investor risk appetite and institutional repositioning.
Fed Chair Powell hinted at potential rate cuts, igniting a market-wide crypto rally.
Crypto market cap reclaimed $4 trillion, adding roughly $200 billion in a day.
Bitcoin and Ethereum recorded multi-week highs amid increased institutional flows and whale transfers.
Powell dovish remarks drive crypto rally; market cap tops $4T. Read impact analysis and investor steps. (COINOTAG) — Learn more.
What did Powell’s Jackson Hole remarks mean for the crypto market?
Fed Chair Jerome Powell’s dovish comments at Jackson Hole signaled the possibility of future interest-rate cuts, which immediately increased risk appetite and liquidity in markets. The remarks coincided with a rapid crypto rally that pushed the total market capitalization back above $4 trillion and lifted major tokens to new highs.
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Markets reacted quickly: Bitcoin and Ethereum posted notable gains and trading volumes spiked. Reported intraday moves added about $200 billion to the total crypto market cap, driven by both retail momentum and institutional positioning. Large transfers of Ethereum observed on-chain were noted as possible strategic reallocations by institutional actors.
Powell’s dovish tone reduced expectations for prolonged tight monetary policy. Lower expected interest rates typically raise the present value of future cash flows and increase liquidity, which can lift risk assets such as equities and cryptocurrencies. Traders interpreted the comments as a signal that tightening may ease, prompting rapid repositioning.
Institutional activity included reduced outflows from Bitcoin exchange-traded vehicles and substantial on-chain flows of Ethereum. Plain-text mention: Galaxy Digital transfers were observed on-chain and discussed by market participants as tactical moves tied to renewed risk-on sentiment. These flows highlighted a coordinated institutional response rather than purely retail-driven momentum.
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Source: https://en.coinotag.com/powells-dovish-remarks-may-spur-bitcoin-rally-as-crypto-market-cap-tops-4-trillion/