Crypto Market Surges on Powell Rate-Cut Hints

Bitcoin surged to around $116,500, while ether rebounded to near-record levels, reaching $4,738.91.

Crypto-related stocks, such as Strategy and Coinbase, also saw gains.

Prediction markets now place higher odds on a September rate cut after Powell's speech.

Powell cited a shifting balance of risks, suggesting that downside risks to employment are rising, potentially warranting a change in policy stance.

Bitcoin (BTCUSD) jumped from a morning low of below $112,000 to around $116,500.

Ether (ETH) rose by 12% to $4,738.91, nearing its 2021 all-time high.

Companies accumulating ether, like Bitmine Immersion and SharpLink Gaming, saw their shares jump by 14% and 12%, respectively.

Fundstrat's Tom Lee characterized Powell's speech as 'dovish.'

Jordi Alexander, CEO at Selini Capital, noted that traders were caught off-guard by Powell's comments, leading to a 'panicked repositioning.'

Polymarket now shows an approximately 80% chance of a quarter-point rate cut next month, up from 56% before Powell's speech.

CME FedWatch indicates an 87% probability, compared to 75% the previous day.

While most crypto-related stocks rose, ETHzilla experienced a significant tumble after offering a large number of its shares for resale.

Ether ETFs saw $287.6 million in inflows on Thursday, snapping a four-day streak of outflows.

Q: What caused the crypto market surge?

Q: Which cryptocurrencies benefited the most?

Q: What are prediction markets indicating?

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