The price of Bitcoin (BTC) rebounded sharply to $117,000 on Friday, gaining more than 2% within minutes after Federal Reserve Chair Jerome Powell hinted at a potential rate cut during his highly anticipated Jackson Hole speech.
The remarks immediately boosted risk assets, lifted cryptocurrencies, and weakened the U.S. dollar. BTC price surge comes as several crypto industry participants recently shared forecasts for higher prices in the crypto market.
Data from Cointelegraph Markets Pro and Trading View captured the volatility as traders digested Powell’s words. “The current situation with inflation and the labor market may warrant adjusting the Fed’s monetary policy stance,” Powell said at the annual symposium, a venue closely watched for policy direction.
Market Reaction: Crypto and Risk Assets Rally
Markets responded swiftly. Bitcoin bounced off its recent range lows, sparking liquidations of more than 150,000 traders, worth an estimated $259.5 million in ask orders above $117,000.
“Well played bounce from the range low sweep on the back of a dovish Powell,” trader Daan Crypto Trades commented on X, warning that volatility would likely persist throughout the day.
Scott Melker, known as the “Wolf of All Streets,” highlighted Bitcoin’s repeated bullish divergences across the 4-hour, 6-hour, and daily charts, noting the resilience of BTC at its key $112,000 support level.
Ethereum Breaks Key Resistance
Ethereum (ETH) also seized the momentum. Ether surged 7% in an hour, breaking decisively above the $4,350 resistance level it had tested five times earlier in the week. The move formed the confirmation of an inverse head-and-shoulders pattern, signaling a short-term bullish break of structure.
ETH quickly pushed into the $4,550–$4,650 supply zone, setting sights on near-term highs above $4,800. Analysts expect sellers to attempt reasserting pressure at those levels, though institutional demand is strengthening Ether’s foundation.
Spot ETH ETFs have become a magnet for capital inflows, recording $5.43 billion in July and $2.45 billion in August—marking the strongest quarter of ETH ETF demand in history. Institutions and corporate treasuries are increasingly adopting Ether, further validating its role as the “second pillar” of crypto.
Policy Tailwinds: Crypto in U.S. 401(k) Plans
Beyond Powell’s dovish tone, another catalyst is on the horizon. On August 7, President Donald Trump signed an executive order granting Americans the ability to include digital assets in 401(k) retirement plans. Analysts believe this move could dwarf even the impact of spot Bitcoin ETF approvals earlier in the year.
Bitwise’s head of European research, André Dragosch, estimates that even a modest 1% allocation of 401(k) portfolios into Bitcoin could unleash $122 billion in fresh capital inflows, potentially driving BTC above $200,000 before year-end.
Analysts See Renewed Bullish Trend
Momentum indicators and policy tailwinds are aligning in Bitcoin’s favor. With Powell signaling a likely September rate cut, ETH ETFs drawing record inflows, and 401(k) access opening new doors for mainstream adoption, analysts agree the crypto uptrend has returned. “BTC’s uptrend is back,” Dragosch noted, “and $200,000 is within reach before the year closes.”
If predictions hold, 2025 could be remembered as the year when monetary policy shifts and structural adoption propelled Bitcoin and Ethereum to historic highs, reshaping the global digital asset landscape.