Bitcoin Climbs Higher Following Powell’s Hint at September Rate Cut

Powell Opens Door to September Rate Cut, Boosting Bitcoin and Market Sentiment

August 22, 2026 — Federal Reserve Chair Jerome Powell surprised investors by delivering a dovish message at the Kansas City Fed’s Economic Symposium in Jackson Hole on Friday, suggesting that a September interest rate cut is now on the table.

Powell emphasized mounting downside risks to employment, stating, “Downside risks to employment are rising. If those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.”

Following Powell’s comments, Bitcoin gained roughly 2%, reaching $114,200. U.S. equities advanced more than 1%, the 10-year Treasury yield fell by six basis points to 4.27%, the dollar index declined 0.5%, and gold prices rose 0.6%.

Market Volatility Ahead of Powell’s Speech

Leading into Powell’s remarks, cryptocurrencies and broader risk assets faced selling pressure amid expectations of a hawkish Fed stance. Bitcoin had surged to an all-time high above $124,000 a week ago on nearly 100% odds of a rate cut, but those odds dropped to 69%, dragging the price down almost 10% to about $112,000.

Since Powell’s speech, market expectations for a September cut have surged back to near 90%, according to CME FedWatch, driving Bitcoin’s recovery.

Ether (ETH) saw a deeper correction, falling about 12% from its recent peak before bouncing nearly 8% after the announcement.

The Nasdaq Composite also declined 3% over recent days as investors prepared for less accommodative policy, only to rebound after Powell’s more dovish tone.