As of press time, the second-largest crypto was trading at a high of $4,888 and was continuing to move upward.
The Fed Chair stated that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” sparking widespread speculation about September rate cuts.
UBS analysts noted that Powell’s dovish remarks represent “the framing and justification of an inflection in policy bias,” with the Fed Chair shifting mandate emphasis from inflation to employment concerns.
Traditional markets mirrored crypto’s performance, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average each rising approximately 2%.
The US dollar weakened against gold and other major assets as investors anticipated easier monetary conditions.
Ethereum’s breakthrough marks a significant reversal from its multi-year low of $1,385.41 reached in April 2025, the token’s lowest price level since March 2023.
The rally damaged leveraged traders, with Coinglass data revealing over $553 million in liquidated positions during the past 24 hours.
Short sellers bore the brunt of losses, accounting for $308 million in liquidations, while long positions shed about $325 million. Ethereum dominated liquidation volumes with $251 million erased, followed by Bitcoin at $102 million.
The Fed’s potential September rate cut could expand liquidity further, potentially extending crypto’s current momentum as markets remain closely tied to US monetary policy decisions.
