Bitcoin Jumps Above $116K as Powell Signals Possible Rate Cuts in Jackson Hole

The cryptocurrency market lit up on Friday after Federal Reserve Chairman Jerome Powell hinted at a possible interest rate cut during his speech in Jackson Hole, Wyoming.

Bitcoin surged nearly 2.5% within 15 minutes, climbing from $112,000 to over $164,700. Ethereum followed with an almost 7% rally, jumping from $4,300 to $4,600. Despite the gains, both assets remain slightly down for the week, reflecting investor unease over the Fed’s policy direction earlier in the week.

Altcoins also saw a burst of momentum. XRP regained the $3 mark for the first time since Tuesday, climbing more than 6% in under an hour. Solana matched that move, while Dogecoin jumped over 7% in the same window.

Markets are watching closely as Powell balanced optimism with caution. He acknowledged that inflation risks remain elevated but signaled that the central bank could adjust its stance as early as September if full employment and stable prices fall into conflict.

“The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said, leaving the door open for cuts.

Still, he warned that inflationary pressures from tariffs pushed by U.S. President Donald Trump have yet to fully appear in economic data. Supply chain adjustments may take months to settle, and the Fed will not allow temporary price hikes to morph into persistent inflation.

Analysts noted that Bitcoin and other cryptos were subdued earlier in the week as traders awaited Powell’s final Jackson Hole speech. Markets had been bracing for a hawkish tone, but the measured remarks offered enough room for optimism — and the crypto market responded instantly.