- Powell’s speech sparks Ethereum breakout and Cardano bullish confirmation.
- Investor sentiment jumps as markets price in potential September rate cut.
- Crypto market capitalization rises above $4.07 trillion on renewed optimism.
Jerome Powell recently shook the crypto market, and crypto traders noticed immediately. Ethereum surged, Cardano showed bullish confirmation, and overall market capitalization jumped past $4.07 trillion. Investors quickly adjusted expectations for a September rate cut, with sentiment swinging dramatically from 69% to 89%. The Fed chair’s words sparked more than hope—they ignited action. For traders, these moves hint at a new business cycle where major coins could rally significantly.
Powell Signals Flexibility and Market Optimism
During his speech, Jerome Powell stressed that tight immigration policies and rising tariffs impact employment and prices. He explained the Fed remains ready to act, adjusting policy as risks shift. “The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” he noted, signaling flexibility.
Traders read this as a pivot from rigid monetary policy. Powell reassured markets that temporary price hikes would not trigger ongoing inflation. He acknowledged that tariff-driven price pressures take time to appear fully in economic data. Investors interpreted this as a green light for risk assets, sparking rapid moves in Ethereum and Cardano.
The market responded immediately. Ethereum broke key resistance levels, drawing attention to bullish technical setups. Cardano, meanwhile, showed careful but steady gains, confirming a positive trend. Powell’s comments gave both coins momentum while the broader market advanced by 4.6%. Analysts suggested traders treat this period as the start of a new business cycle in crypto.
The Crypto Market Rides Powell’s Wave
Political and historical context amplified the impact. Powell spoke after five Fed meetings with no rate changes and under pressure from the White House. President Trump had urged rate cuts amid a slowing economy, creating a backdrop of high anticipation. Powell also referenced the Fed’s aggressive COVID-19 response, reminding markets that decisive actions can stabilize asset prices under extreme conditions.
Investors quickly factored these signals into trading decisions. Ethereum’s breakout reflects renewed confidence, while Cardano’s steady climb suggests growing buy-side interest. Traders watched for potential resistance, but bullish sentiment remains strong. Analysts highlighted that the combination of flexible Fed policy, investor optimism, and historical parallels could sustain momentum across major altcoins.
Powell’s words acted like a spark lighting a controlled blaze in crypto markets. The rapid shift in sentiment shows how quickly major coins can react to policy signals. Ethereum and Cardano gains illustrate both excitement and caution, a duality traders must navigate. If markets continue to respond this way, the next few weeks could deliver significant upward moves for top cryptocurrencies.
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