The cryptocurrency market saw a powerful, broad-based rally on Friday, with Ethereum (ETH) leading the charge by shattering its previous all-time high. The surge was triggered by Federal Reserve Chairman Jerome Powell’s latest remarks, which signaled a potential interest rate cut as early as next month.
The price of Ethereum soared over 15% in 24 hours, climbing past its 2021 record of $4,869.47 to reach a new all-time high of approximately $4,888. The second-largest cryptocurrency is continuing its upward trajectory, marking a significant turnaround from its multi-year low of $1,385.41 in April.
Powell’s comments, delivered at the Jackson Hole symposium, were widely interpreted as “dovish.” He noted that “the shifting balance of risks may warrant adjusting our policy stance,” prompting analysts to speculate on a September rate cut. Following his speech, the crypto market’s total valuation jumped by more than 4% in just one hour, reclaiming the $4 trillion mark.
The renewed optimism rippled across the entire digital asset space. Bitcoin (BTC) climbed over 4% to $117,000, while other major altcoins experienced double-digit percentage gains. BNB also hit a new all-time high of $900, with XRP, Solana (SOL), and Dogecoin (DOGE) all posting strong returns.
Traditional financial markets mirrored the crypto rally, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average each rising roughly 2%. The U.S. dollar weakened against other major currencies and gold as investors bet on easier monetary conditions.
The rapid price increase, however, proved costly for some traders. Data from Coinglass shows that over $553 million in leveraged crypto positions were liquidated in the past 24 hours, with short sellers accounting for the majority of the losses. Ethereum led the liquidations with $251 million in wiped-out positions.
Experts suggest the Fed’s potential rate cut could further boost liquidity, potentially extending the crypto market’s momentum. Market observers will be watching closely as the crypto market continues to react to U.S. monetary policy decisions.
