Powell's Speech Triggers $300M Bitcoin Futures Surge
Bitcoin Futures React to Powell's Jackson Hole Remarks
Bitcoin experienced significant volatility recently, with sharp price swings creating uncertainty. After reaching a high near $124,000, Bitcoin quickly fell below $115,000. The market demonstrated resilience, rebounding in response to macroeconomic signals.
Federal Reserve Chair Jerome Powell's speech at Jackson Hole proved to be a pivotal moment. His indication of a possible adjustment to restrictive monetary policy conditions led to an immediate market response. Risk assets, including Bitcoin, saw a surge as liquidity flowed back into the markets, boosting optimism.
Bitcoin regained strength after the speech, moving back above the $115K support level. This recovery renewed bullish sentiment, with traders now watching key resistance levels. The broader crypto market followed, with altcoins gaining momentum as investors reallocated capital.
$300M Flows Into Bitcoin Futures
According to analyst Darkfost, Powell's Jackson Hole speech acted as a catalyst for Bitcoin futures. Powell stated that "with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance." This statement suggested a possible easing of monetary policy.
Within 15 minutes of Powell’s speech, over $300 million in liquidity entered Binance's Bitcoin futures market. This influx pushed Binance BTC Open Interest to approximately $13.3 billion, highlighting the sensitivity of crypto derivatives markets to macroeconomic developments.
Darkfost emphasized the impact of central bank communications on speculative demand, especially when liquidity conditions are crucial. Bitcoin's reaction mirrored broader risk-on sentiment as traders prepared for potentially looser monetary conditions.
This event also underscored the volatility of Bitcoin futures, where changes in Open Interest can rapidly amplify price movements. The surge in demand coincided with Bitcoin reclaiming key support zones, reinforcing a bullish outlook.
Bitcoin Tests Critical Resistance
Bitcoin's 4-hour chart shows significant volatility following Powell's remarks, with a sharp rebound from lows near $112K to $116.5K. This reflects how macroeconomic events can quickly trigger liquidity inflows. The bounce aligns with the reclaiming of the 200-period SMA, which is now acting as short-term support.
Despite the rally, Bitcoin remains below its recent $123,217 resistance level. The mid-term structure suggests consolidation, with the 50-SMA and 100-SMA converging around $116K–$117K, creating a key decision zone. Sustaining above this level could lead to another retest of the highs, while failure to hold risks a deeper pullback toward the $112K region.
Momentum indicators suggest buyers are trying to regain control, but price action is not yet showing a clear breakout. For bulls, defending $115K–$116K is crucial. Bears will look for rejection below the SMAs to reinforce downside pressure.