Bitcoin, Ethereum, XRP Jump After Powell's Fed Speech. How the Fed Is Boosting Cryptos. — Barrons.com
By Adam Clark and Nate WolfBitcoin and other cryptocurrencies were rising Friday as traders welcomed Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium. Ethereum led the charge higher, jumping by double digits.Bitcoin's price was up 4.2% over the past 24 hours on Friday afternoon, at around $117,220.The world's largest cryptocurrency was being helped by Powell's comments at Jackson Hole that rate cuts could be warranted.Lower rates make risky assets such as stocks and digital assets more attractive relative to interest-yielding investments such as bonds. Reduced rates also tend to weaken the dollar, which boosts crypto valuations.Bitcoin hit a new high of more than $124,000 last week amid optimism over interest-rate cuts. However, cryptos dropped back after economic data and Fed meeting minutes suggested policymakers are likely to be split over the need for rate reductions.Large altcoins were climbing even more sharply. Ethereum was up 14% at around $4,789 and reached a new intraday high in the early afternoon. XRP rose 6.4% and Solana was up 9.1%. Dogecoin, which is a memecoin, was rising 10%."Correlations between cryptos and equities are high, and we see a market mood that will be highly sensitive to this week's comments from the Jackson Hole meeting of monetary authorities, as well as from any reactions from fiscal authorities," wrote Manuel Villegas, an analyst at Julius Baer, in a research note.Write to Adam Clark at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.