Powell rate cut crypto rally: Federal Reserve Chair Jerome Powell’s dovish hint of a potential interest rate cut in 2025 triggered a swift crypto market rally, driving large liquidations among leveraged traders and notable price gains for Bitcoin and Ethereum while boosting institutional interest in staking and yield products.
Powell’s dovish 2025 rate-cut hint sparked a market surge
Bitcoin and Ethereum saw rapid price moves and elevated volatility.
Market cap rose ~3.2% and institutional staking demand increased sharply.
Powell rate cut crypto rally: Read how Fed comments spurred a 3.2% market cap rise and pushed Bitcoin and Ethereum higher — learn what investors should watch next.
What caused the crypto market surge after Powell’s comments?
Powell rate cut crypto rally came after Federal Reserve Chair Jerome Powell signaled a potential interest rate cut in 2025, prompting traders to reprice growth and risk assets. The statement immediately increased demand for high-beta crypto assets, causing leveraged liquidations and rapid price appreciation in major tokens.
How did Bitcoin and Ethereum react to Powell’s dovish remarks?
Bitcoin and Ethereum experienced notable intraday moves as traders adjusted positions. Reported indicators show a 3.2% increase in total crypto market capitalization and Bitcoin’s market cap reaching approximately $2.32 trillion. Leveraged long and short positions triggered liquidations, amplifying volatility and short-term price swings.
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Regulatory clarity and recent SEC guidance enabling certain staking-backed products have encouraged institutions to explore regulated yield strategies. With expectations of lower rates in 2025, yield-seeking capital moved toward staking and custodial staking services as a diversified income source.
Source: https://en.coinotag.com/powells-dovish-comments-may-propel-bitcoin-and-spur-institutional-interest-in-staking-etfs-ahead-of-possible-2025-cut/