Powell’s Jackson Hole Speech: Markets Cheer, Crypto Soars — But Can It Last?

With Fed Chairman Jerome Powell's speech in Jackson Hole, a very clear signal was given in the financial markets: the Fed may adopt a more flexible stance. This particularly strengthened the possibility of easing in interest rate policies. The result? Record highs in stock prices, declines in bond yields... and of course, a strong rebound in crypto assets.

What Happened in the Crypto Front?
• Bitcoin (BTC) has risen above 116,000 USD after Powell and is currently trading at around 115,743 USD.
• Ethereum (ETH) experienced one of the biggest rallies. Following the discussion, the altcoin recorded an increase of over 14%, rising to nearly 4,800 USD. The current price is approximately 4,713 USD.

Possible Crypto Surprises and Risks

The expectation of a "softer monetary policy" presented by Powell has increased investors' interest in risky assets. The crypto market quickly priced in this perception. However, it should not be forgotten that:
• This rally is a "expectation-based" movement. If the Fed does not give a clear signal at the September meeting, the market may quickly pull back.
• Some analyses on the Ethereum side predict that ETH could rise to as high as 7,000 USD by Q4 2025 – but short-term volatility remains high.
• Despite some experts' long-term optimism for Bitcoin, there is a view that more caution should be exercised depending on market data and the Fed's actions, for example, predictions of 200,000 USD.

My Own Evaluation

The market is currently moving based on confidence in Powell's dovish stance. However, if inflationary pressures or labor data are not strong enough to influence the Fed's position, the sustainability of this seasonal rally may be questioned. Will we see a deep bull market for crypto, or just a temporary fatigue rally? Everything will become clearer after the September FOMC meeting.
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#Jackson Hole Meeting