Cryptocurrencies increased on Friday night after the president of the Federal Reserve, Jerome Powell, reached a misleading tone in the Jackson Hole economic symposium, challenging the expectations of the market of a more aggressive position. That has led assets administrators to request new maximums of all time for Bitcoin ether (Eth) and select Altcoins.
What did Powell say?
In one of his most important speeches, Powell suggested that the labor market could benefit from the lowest indebtedness costs, having maintained the stable reference interest rate at 4.25% for eight months.
“The downward risks for employment are increasing,” Powell said in comments prepared for his opening speech in the Jackson Hole symposium, and added that the possibility that the tariffs of President Donald Trump have only a short duration effect on inflation is “reasonable.”
“With policy in restrictive territory, the reference perspective and the changing balance of risks can justify adjusting our policy position,” he said.
Cryptocurrencies and actions shot, and the probability of the cutting rate of the September Fed increased to 90% after speech. Most analysts expect the impulse to continue in the next few days.
Analysts see new maximums for BTC and ETH above $ 5K
Monarch Asset Management analysts anticipate that Ether’s price will increase above $ 5,000 in the next few days.
“We maintain our general bullish posture. The inmates of the market are still constructive, with few signs of overheating and, as you point out, a clear path to the new maximums of all time both in BTC and Eth,” said Sam Gaer, Investment Director of the Directorate Fund of Monarq Asset Management, to Coindesk.
“Our house’s opinion is that Powell’s Pivot Dovote has cleared the way for $ 5,000+ in the short term (Nor is it the most difficult call to do). The demand for treasure vehicles should increase in autumn, since many of the agreements announced this summer or SPAC, in addition to the institutional and retail entrances in progress, “Gaer added.
Ethereum’s native token ether has already won almost 10% in 24 hours, reaching records more than $ 4,800. At the time of writing, he changed from hands to $ 4,700, according to Coindesk data. Meanwhile, the Bitcoin market leader quoted about $ 115,600, slightly below the maximum night of $ 117,400.
The data of the options quoted in the Delibit show that the Ether rally has caused a renewed demand for upward bets or purchase options. At the time of publication, risk reversions were positive in all tenors, which implies relative call richness. The feeling was not so optimistic in BTC options.
Gaer declared that free sales desks and market manufacturers are experiencing a greater demand for eth compared to BTC, suggesting that Ether can overcome ahead.
That said, BTC also looked strong on its own. “ATC’s BTC setback was ~ 9.6%, much less than the previous raids this year, indicating a strong demand, as evidenced by the accumulation of wallet wallets around the level of $ 113k,” Gaer said.
Spencer Yang, managing partner of Blockspacorce, a Treasury Crypto advice firm, said that more rates cuts could occur after September, ensuring that the impulse extends until the end of the year.
“Now we hope that rates cuts occur in September. It will be the first cut since Trump became president this year. This is significant and many more will come,” said Yang, calling new maximums in the cryptography market.
“The main 5 to which we pay attention: BTC, ETH, BNB, Sun, Link. This will work well given the various parts of the cryptographic industry that impact,” Yang added.
Focus on ETF flows
Steve Lee, co -founder and managing partner of Neoclassic Capital and investor in Blocktower Capital, described the Powell’s Dovish, made a short -term constructive development for cryptocurrencies, while underlines the importance of continuous entries in the Bitcoin and Ether Spot ETF.
“I see this as a constructive in the short term, and can help reverse the sale of this week’s sale. The key question is whether this impulse is maintained beyond the weekend of low liquidity. Since the price action of BTC and ETH is increasingly institutionally driven, the ETF flows detected today and Monday will be a strong indicator of whether we are prepared for a higher leg,” Lee told Colesk.
Lee highlighted the base, the monad, the history and the SUI as a key project of interest that is closely monitoring in its capacity as capitalist of risk at the initial stage.
Meanwhile, Gaer favored Solana and the sun ecosystem, including high beta tokens such as Jito and Jup. Raydium and pumping both for “fundamental and direct demand.”
Potential winds against
While Powell’s Powell’s position has prepared the stage for a demonstration, merchants must remain cautious about the possible difficulties of adoption and volatility of cryptocurrencies of the corporate treasure in capital markets.
“Digital Assets Treasures (DAT) They are an innovative vehicle for public market investors to obtain exposure to digital asset space. However, we have begun to see the quality of the DAT agreements, from banking relationships, compliance, management equipment and treatment structure, which shows early signs of a ‘bubble, “Lee said.
The NAQSDAQ list strategy began this BTC corporate adoption trend in 2020. Since then, more than 100 companies that are quoted in the stock market have accumulated a total of 984,971 BTC, according to the treasures of the Bitcoin data source.
“The trend can continue, but it is obvious that the risks associated with this are not ignorable,” Lee added.
Gaer requested the risks of monitoring closely of an overheated capital and “potential for macro or geopolitical shocks.”
