BTC/USD: Bitcoin Gains 5% to $86,000 as Powell Message Sparks Crypto Enthusiasm

OG coin rushed to higher grounds after the Fed chief signalled two cuts to interest rates were still in the cards for 2025. Ether cracked $2,000. 🏷️ Bitcoin Pops to $87,500Bitcoin prices rallied 5% on Wednesday after crypto traders flocked to buy up the token on elevated optimism coming from the Federal Reserve. The original cryptocurrency powered to a session high of $86,000 and briefly extended its pop to $87,500 Thursday morning. But momentum faded and the crypto was back under $86,000 a piece as trading normalized and volatility settled. Still, Bitcoin hit a peak last seen in early March — an indication that the bulls might be taking over? 💲 Powell-Powered GainsThe upside swing was driven by Federal Reserve boss Jay Powell who struck an upbeat note during his press conference. After the central bank announced it’s holding interest rates where they are, the top policymaker said his banking squad is weighing . That’s good news as they’ve maintained their previous projection despite Donald Trump’s tariff hikes. Precisely because of this uncertainty, Powell said, inflation might creep up and growth might slow down, hence the trims might be needed. 🔎 Bitcoin Down 26% from RecordIn all that, Bitcoin advanced thanks to the boost in risk appetite from traders who believe that lower borrowing costs will inject fresh liquidity into risk assets and drive the market forward. With that pump factored in, the orange coin is about 26% under its hit in January. Ethereum , the second-biggest coin, did even better yesterday, adding 6.5% to its valuation. Ether blasted through $2,000 to hit a ten-day high after previously floating near $1,920 a pop.