The crypto market rallied more than 4% to reclaim the $4 trillion mark after Federal Reserve Chair Jerome Powell signaled that US interest rates could be lowered in September.
In his speech at the Jackson Hole symposium in Wyoming, Powell said:
“The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
As a result, Bitcoin’s price jumped more than 3% within the last 24 hours, climbing to roughly $117,000 as of press time, according to data from CryptoSlate.
Meanwhile, the traditional markets also reportedly rallied. The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose by around 2% each on the news.
At the same time, the US dollar weakened against gold and other major assets, reflecting investors’ anticipation of easier monetary conditions.
The rally inflicted significant damage on leveraged traders positioned against crypto prices.
Ethereum saw the largest share of liquidations, with $251 million erased. Bitcoin followed with $102 million, while XRP and Solana posted losses of $17 million and $30 million, respectively.
The scale of these liquidations reflects how tightly crypto markets remain linked to US monetary policy.
If the Fed proceeds with a rate cut in September, liquidity could expand further, strengthening the case for risk assets and extending the current momentum.
