Cryptocurrencies jumped Friday evening after the president of the Federal Reserve Jerome Powell took a dominant tone at the economic symposium of Jackson Hole, defying market expectations for a more bellicist position. This prompted asset managers to call for new heights of all time for Bitcoin ether (Eth) And select Altcoins.
What did Powell say?
In one of his most important speeches, Powell suggested that the labor market could benefit from a drop in loan costs, having held the reference rate of reference to 4.25% for eight months.
“Risks down for employment is increasing,” Powell said in remarks prepared for his opening speech to the Jackson Hole symposium, adding that the prices of President Donald Trump having only short -term effect on inflation are “reasonable”.
“With a policy in restrictive territory, the reference perspectives and the risk balance change can justify the adaptation of our position of policy,” he noted.
Cryptocurrencies and actions have skyrocketed, and the probability of reducing the rate of the September Fed reached 90% after the speech. Most analysts expect the momentum to continue in the coming days.
Analysts see new heights for BTC and ETH above $ 5,000
Monarq Asset Management analysts provide that Ether’s price will increase above $ 5,000 in the coming days.
“We maintain our global optimistic position. The market interns remain constructive, with few overheating signs and, as you point out, a clear path to new peaks of all time at the BTC and ETH,” said Sam Gaer, director of investments for the management fund of Monarq Asset Management, Coindesk.
“Our home point of view is that Powell’s Dovish pivot has paved the way for $ 5,000 and more in the short term (not the hardest call to make either). The demand of cash vehicles should increase in the fall, as many transactions announced this summer, closure or de-spac, in addition to the institutional and detail in progress, “added Gaer.
The native ether native of Ethereum has already won almost 10% in 24 hours, reaching record heights greater than $ 4,800. During the editorial staff, he changed hands at $ 4,700, according to Coindesk data. Meanwhile, the Bitcoin market leader exchanged almost $ 115,600, slightly down compared to the top of a night of $ 117,400.
The data from the derived listed options show that the Ether rally has sparked a renewed request from Paris upwards or call options. At the time of the press, risk inversions were positive in all tenors, which implies the relative wealth of calls. The feeling was not so optimistic in the BTC options.
Gaer said that on -the -counter offices and market manufacturers are experiencing stronger ETH demand compared to the BTC, which suggests that ether could surpass in advance.
That said, BTC also looked strong. “The withdrawal of the ATH BTC was ~ 9.6% – withdrawals lower than previous titles this year – indicating a high demand, as evidenced by the accumulation of whale portfolio around the level of $ 113,000,” said Gaer.
Spencer Yang, director manager of BlockSpaceforce, a Crypto-Trésor consulting company, said more decreases could occur after September, ensuring that the momentum extends until the end of the year.
“We are now expecting rate reductions to occur in September. It will be the first decrease since Trump became president this year. It is important, and many others will come,” said Yang, calling for new heights on the cryptography market.
“The main 5 to which we are careful: BTC, ETH, BNB, Sol, Link. These will do well given the different parts of the cryptographic industry that they have an impact,” added Yang.
Focus on ETF flows
Steve Lee, co-founder and managing partner at Neoclassic Capital and Investor in Blocktower Capital, called Dovish from Powell, short-term constructive development for cryptocurrencies while highlighting the importance of continuous entries in Bitcoin ETF and Ether Spot.
“I consider this to be constructive in the short term, and this can help to reverse the sale of this week. The key question is whether this momentum is exceeded on low liquidity weekend. Since the BTC and ETH price action is increasingly motivated by the institution, flows and spots today will be a strong indicator of the question of whether we are ready for another higher leg.”
Lee highlighted Base, Monad, Story and Suis as key projects of interest which he closely monitored in his capacity as a starter capital.
Gaer, meanwhile, favored Solana and the ground ecosystem, including high beta soil tokens such as Jito and JUP. Raydium and pump that is both “fundamental and before-demand”.
Potential winds
While the dominant position of Powell has prepared the ground for a rally, traders should remain cautious about the potential traps of the adoption and volatility of corporate treasury cryptocurrencies on the stock markets.
“Treasure of digital assets (Dat) are an innovative vehicle for public market investors in order to expose themselves to digital asset space. However, we have started to see the quality of the DAT offers – banking relations, compliance, management team and transaction structure perspectives – which shows, which shows the first signs of a bubble, ” said Lee.
The strategy listed by NAQSDAQ began this tendency to adopt the BTC of companies in 2020. Since then, more than 100 companies listed on the stock market have accumulated a total of 984,971 BTC, according to Bitcoin Source vouchers.
“The trend can continue, but it is obvious that the risks associated with this are not ignorable,” added Lee.
Gaer called to closely follow the risks from an overheated stock market and “macro or geopolitical shock potential”.
