Bitcoin & Ether Surge: Altcoin Rally Fuels Crypto Market Gains
Altcoins Lead Crypto Market Rally
Recent crypto market activity has been largely driven by altcoins, with Solana (SOL) and Dogecoin (DOGE) experiencing significant gains. SOL has increased by 17% over the past week, while DOGE has surged by 25%. This rally is fueled by anticipation surrounding new ETFs and the emergence of crypto treasury companies focused on these tokens.
Bitcoin and Ether Join the Party
After lagging behind, Bitcoin (BTC) and Ether (ETH) are now experiencing upward momentum. As of late Friday, Bitcoin rose 2% in two hours to reach $116,600, while Ether jumped 5% to $4,650. These are prices unseen since August, following Federal Reserve Chairman Jerome Powell’s Jackson Hole speech.
Powell's Speech and Market Reaction
In his Jackson Hole address, Powell signaled a shift towards prioritizing the labor market over inflation, prompting immediate reactions from interest rate traders. Expectations for a September rate cut surged.
Following Powell's speech, Bitcoin briefly spiked from $112,000 to over $117,000, but Ether saw a more dramatic surge, jumping over 16% in under 48 hours and approaching $5,000.
However, the bullish momentum quickly faded, with both ETH and BTC retracing their gains by the end of August.
Upcoming Fed Meeting
The market anticipates the upcoming Federal Reserve meeting, where traders universally expect a 25 basis point rate cut, bringing the benchmark fed funds rate to 4%-4.25%.