This is why Crypto set fire to the market yesterday

The cryptocurrency markets rose to a new area on Friday after the Federal Reserve Chairman, Jerome Powell signal The interest rate discounts can be imminent, which prompted the first 800 points in addition to earning this year. This ended the longest series of Dow without a new rise since December 4, 2024, according to Dow Jones market data, and pointed to a significant increase in optimism about the possibility of some relief in economic policy.

The encryption was the main stars in this gathering.

ETHEREUM (ETH) More than 15 % rose to reach the highest new level ever at $ 4885, bypassing the previous record from November 2021, while Solana (Sol) swinging Between 8 % and 12.5 % in a 24 -hour period, and the “psychological” brand hit a long -term value of $ 201.94. Bitcoin (BTC) Their fans were also their moments when he approached $ 70,000.

The cryptocurrency and shares also increased, The possibility of reducing the federal reserve rate in September Jumped to 90 % after speaking, Reuters reports.

So why is all enthusiasm?

Simply: When the market feels safer, it invests in places that are considered more dangerous bets. Curricula and other technologies that constitute part of the emerging technology work directly at that intersection.

This time, institutional investors appear to have led these fees, looking for investments that can balance the fragile US dollar, public fluctuations and risks.

“It is almost a relief gathering,” said Carol Shlev, head of market strategies at BMO Private Wealth. Wall Street Journal. “The markets were expecting more anxiety.”

Steve Lee, co -founder and administrative partner in the new capital and investor in the government capital, said that optimism from the market is a sign that cash mitigation is a reflection of that anxiety, and can be a change in the wealth of the sector, which was renewed in the last trading.

“I see this based on the short term, and it may help in the opposite of the sale this week. The main question is whether this momentum exceeds the low weekend. Since BTC and ETH ETH prices are increasingly driven, ETF SPOC flows Coindsk said.

What did Powell say?

As usual, Powell arrived directly to this point during his speech in Wyoming on Friday.

Powell said at the Jackson Hall symposium. “If these risks are fulfilled, they can do this quickly in the form of sharply higher hairstyles and high unemployment.”

Powell also said that the recent movements of the Trump administration may affect inflation.

“With politics in restrictions, basic expectations and the variable risk balance may require modifying our position on politics,” he said, adding that the customs tariff can push inflation to the top, at least temporarily. “There is a reasonable essential condition that the effects will be relatively short -lived, and it is a single -time transformation at the price level.”

You can Read the entire Powell letter here.

So how high we are?

In the case of this gathering, the upward tide has not already raised all the boats.

The broader S&P 500 also witnessed strong gains, increasing by 1.5 %, and its best performance since May, and the shares were a bright point in the NASDAQ boat, which advanced by 1.9 %.

But perhaps most importantly, the index used by Wall Street to measure the extent of investor’s fear, CBOE (Vix)More than 14 % decreased to its lowest level this year. VIX is preferred in trading for professionals and shows the feeling of the turbulent market.

Experts said that these gains in all areas are an encouraging sign for both Buyside and Sellside.

“The connections between encryption and shares are high, and we see a mood in the market that will be very sensitive to this week’s comments from the Jackson Hall meeting of the monetary authorities, as well as from any reactions from the financial authorities,” wrote Manuel Veligas, an analyst at Julius Bayer in a research note.

Which encryption continues to rise?

Although there is nothing given as soon as the opening bell rings, some analysts actually expect companies that they believe will continue to do a good job.

Analysts at Monarq Asset Management Coindsk have been a greater room for ETHEREUM, and that they expect to see a currency of $ 5,000 in trade near the period.

“We maintain our general bullish position. The interior in the market is still constructive, with a few signs of a high temperature, and as it indicates, a clear path to its highest levels ever in BTC and ETH.” Coindsk said.

“Our point of view is that Powell’s Dovish Pivot has wiped the road for $ 5,000+ in the near term, and not the most difficult invitation to conduct.” “The demand for cabinet compounds must increase in the decline, as many deals have been announced this summer closely or de Spac, as well as the institutional flows and continuous retail.”

Will the Powell rates be reduced?

Friday was an ideal example of the sensitivity of the global markets of politics, especially after a long period of price cuts. Analysts and merchants and every other finance player try to read the Powell tea papers with only mild success, and even a large gathering like Friday cannot fortify a very fragile market.

Although no one can be quite sure of what Powell and The PED will do next week, market monitors in all fields take care of this step. Brian Jacobsen, chief economist at Annex Wealth Management, said. Wsj.

What is the amount that may concern this long -term rate still must be seen.

“We are still doubting that the September reduction indicates a long -term interest rate cycle. The risk of inflation is real and comes from many angles,” wrote Lauren Godwin, economist and a large market in New York for life investments.