Bitcoin May Face Continued Volatility After Powell’s Rate-Cut Signals and Brief Surge Past $124,000

  • Bitcoin price reacts quickly to Fed rate-cut signals, spiking then correcting.

  • Powell’s Jackson Hole comments and subsequent clarifications drove rapid market repositioning.

  • Volatility persisted: BTC hit an intraday high, trading volumes rose, then profit-taking trimmed gains.

Bitcoin price jumped past $124,000 after Powell’s Jackson Hole comments suggested rate cuts, sparking volatility—read the latest market analysis and strategy.

Published: 2025-08-23 | Updated: 2025-08-23 | Author: COINOTAG

What caused Bitcoin’s price to surge and then retrace?

Bitcoin price rose above $124,000 immediately after Federal Reserve Chair Jerome Powell suggested potential rate cuts at Jackson Hole, prompting a rapid bid in risk assets. The rally retraced when markets absorbed follow-up comments and incoming economic indicators, prompting short-term profit-taking and increased volatility.

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Powell’s statement that “downside risks to employment are rising” shifted market expectations toward a more accommodative policy path. Traders priced a higher probability of rate cuts, which typically supports risk assets like Bitcoin. Volume spikes on crypto exchanges and gains in equities accompanied the initial move.

Bitcoin climbed to an intraday peak above $124,000 within hours of the Jackson Hole remarks. The advance was followed by a rapid retracement as subsequent clarifications and inflation data reduced the immediacy of easing expectations. Market microstructure showed elevated bid-ask spreads and increased liquidation events during the swing.


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Source: https://en.coinotag.com/bitcoin-may-face-continued-volatility-after-powells-rate-cut-signals-and-brief-surge-past-124000/