Bitcoin and Ether Rally on Powell’s Comments, Triggering $375M in Liquidations
Bitcoin surged off a major support level on Friday after Federal Reserve Chair Jerome Powell suggested interest rate cuts could be on the table as early as September, triggering a sharp crypto market rally and $375 million in liquidations across derivatives markets.
BTC rebounded 2.6% to $114,800 after dipping to $111,800 — a level last reached during its May all-time high. The move reversed a week-long downtrend from $124,500 and was driven by renewed optimism around monetary easing.
Powell’s speech at Jackson Hole struck a more dovish tone than markets expected, stating that “downside risks to employment are rising” and warning of the potential for “sharply higher layoffs and rising unemployment.” The shift in messaging reignited risk appetite across markets, benefiting both crypto and equities.
Ether led the rally with a 10% gain, climbing from $4,200 to $4,650 within hours. According to CoinGlass data, ETH accounted for $150 million of the total liquidations — the largest single asset contribution — as short sellers were forced out of positions.
Bitcoin and ETH gains were accompanied by a spike in futures activity. Despite the wave of liquidations, open interest hit its highest level in four days, signaling traders are re-entering the market with leveraged positions, per data from Coinalyze.
Outside of BTC and ETH, most altcoins lagged the broader rally, although Lido (LDO) and Ethena (ENA) extended recent gains. Both tokens have been buoyed by regulatory clarity from the SEC regarding staking frameworks earlier this month.
The price action underscores growing investor sensitivity to U.S. policy signals and the tight correlation between crypto assets and broader macroeconomic expectations.
