Bitcoin and Ether Rally as Markets Anticipate Fed Rate Cut
After a week of altcoin-led gains, bitcoin (BTC) and ether (ETH) caught late-Friday buying, signaling renewed strength ahead of next week’s Federal Reserve meeting.
BTC rose 2% in the final U.S. trading hours to $116,600, while ETH climbed 5% to $4,650 — both reaching their highest levels since mid-August volatility that followed Fed Chair Jerome Powell’s Jackson Hole speech.
At the symposium, Powell unexpectedly shifted from a hawkish stance to a more dovish outlook, highlighting labor market weakness over persistent inflation. The comments immediately increased expectations for a September rate cut, leaving only the size — 25 or 50 basis points — in question.
Following Powell’s remarks, BTC jumped from around $112,000 to over $117,000, and ETH surged more than 16% in under 48 hours, briefly approaching $5,000. However, both cryptocurrencies retraced in the following weeks, with BTC falling to $107,000 and ETH returning near pre-speech levels by late August.
Traders now widely anticipate the Fed will lower its benchmark funds rate by 25 basis points to a 4.00%–4.25% range. Meanwhile, altcoins such as solana (SOL) and dogecoin (DOGE) have led recent momentum, posting weekly gains of 17% and 25%, respectively, supported by incoming ETFs and newly formed crypto treasury firms.
