Bitcoin has surged following Jerome Powell's remarks at the Federal Reserve's annual Jackson Hole Symposium, sparking fresh momentum in a bull market that has been quietly crushed since early 2024.
For most of this cycle, Bitcoin rise has been countering the headwinds of financial tightening. The Bull Run story began in June 2023 when BlackRock submitted a Spot Bitcoin ETF application. Since then, despite persistent inflation concerns, hiking rates and constant talk of “longer and higher,” Bitcoin has been shaking macro resistance and marching higher.
You could potentially mark a turning point today. Powell's speech hinted at what the market was waiting for. After nearly two years of restrictive policy aimed at cooling inflation, the Fed chair acknowledged that conditions had changed. Inflation has cooled from its peak, economic growth has slowed, and the burden of strict monetary policy indicates a system crack (see Recent Number of Employments).
For the first time in this cycle, Powell's tone suggested that the Fed was ready to ease the grip.
The market response was immediate. Bitcoin ripped higher because traders were aware of what this meant (~$117,000 at this time of writing). Risk assets thrive when the central bank flashes, and Bitcoin, the most difficult money in existence, tends to be the fastest horse when the Fed runs through the cave into its own new reality.
This is more than just a short-term meeting. It could be an inflection point that turns into a stable, resilient bull market. The Fed's attitude was a damper that remains in the advantages of Bitcoin. If Powell and FOMC signal a shift to accommodation, Bitcoin is standing to disproportionately benefit.
We're still early. This bull market was born in the shadow of BlackRock's ETF filing and matured by merciless skepticism and macrodrugs. Now, as policy winds begin to blow, the path forward may be similar to the previous parabolic stage of the Bitcoin cycle.
The message from Jackson Hole is clear: The Fed is forgiving. Bitcoin has already responded. And if history is a guide, real fireworks may be on the way.
This article is a take. The opinions expressed are entirely the authors and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
This post Jerome Powell Blinks at Jackson Hole: Bitcoin Rips as Bitcoin first appeared in Bitcoin Magazine and is written by Brandon Green.
