Bitcoin spikes up as Fed says ‘time for policy adjustment’ at Jackson Hole
2024-08-23

Bitcoin surged past $61,000 after Fed Chair Jerome Powell expressed increased confidence that U.S. inflation is on a sustainable path back to 2% and indicated that the central bank may start lowering interest rates. 
"The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks," Powell said at the Jackson Hole symposium on Friday.
Following the speech at the central bankers' conference in Wyoming, the global cryptocurrency market capitalization now stands at $2.28 trillion, reflecting a 0.6% increase in the last 24 hours, according to CoinGecko data.
Stocks rose on Friday after Powell's dovish tones. The Dow Jones Industrial Average climbed 417 points, or 1%. The S&P 500 gained 1.2%, and the Nasdaq Composite advanced 1.8%, with technology stocks leading the way in early trading in New York.
Probabilities of a rate cut in September
According to the CME FedWatch tool, there is now a 67.5% probability of a 25 basis point cut and a 32.5% chance of a 50 basis point cut in the federal funds rate at next month's meeting.
Bitfinex Head of Derivatives Jag Kooner told The Block that today's speech at Jackson Hole was a significant indicator of what to expect at the next Federal Open Market Committee (FOMC) meeting on September 18. "Today's speech will likely set the tone for September, with investors paying close attention to Powell's interpretation of recent data and any hints about the scale and timing of future cuts," Kooner told The Block.
"The broader economic indicators, such as GDP and jobless claims, suggest the economy is not in the same dire state as during the 2009 recession," he added.
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