On August 22, 2025, during the annual economic symposium in Jackson Hole, the chairman of the Federal Reserve (FED) Jerome Powell gave a speech that shocked global financial markets. In his speech, Powell emphasized the changing economic landscape, indicating growing risks for the labor market with at the same time persistent inflation pressure. “In a short risk time for inflation, they are directed up, and for employment down – this is a complicated situation” – said Powell, adding that”The balance of risks seems to move“justify“Interest rate discounts as early as September, which is a departure from prior focus only on the fight against inflation to support employment. Powell described the labor market as”interesting balance“, resulting from the slowdown of both supply and demand for work, which emphasizes the need to carefully adapt the monetary policy. The chances of reduction of the feet in September increased significantly, and the prices of most crypto soared up. BNB and ETH have passed its new ATH last day, and enthusiasm on the market has improved significantly.
Market reaction
The reaction of the markets was immediate and euphoric. Investors interpreted Powell’s words as a green light for a looser monetary policy, which led to a rally on risky assets. The DOW Jones index increased by over 800 points, reaching new maximum, Nasdaq gained 1.7%, and S&P 500 jumped by 1.5%. The profitability of the US tax bonds has fallen, the dollar weakened, and the gold increased by $ 53. Experts described the speech as “more pigeons than expected”, which increased the plants for the September rate reduction to 90%. Although some investors warn against caution due to the potential effects of customs tariffs for inflation, general sentiment remained optimistic.
The speech had the greatest influence on the cryptocurrency market, where total capitalization exceeded $ 4 trillion. Bitcoin (BTC) increased by about 3-4%, exceeding 117 thousand. USD before stabilized around 115-116 thousand. USD. However, it was Ethereum who became the star of the day, achieving a new historical maximum (ATH) at around 4885-4895 USD on the Binance exchange, just a few dollars higher than the previous record of November 2021, set exactly 1380 days earlier. ETH gained up to 14-15% per day, which led to the removal of shorts at over USD 259 million and the increase in the volume of turnover to USD 81 billion. Analysts indicate that this jump results from capital rotation towards higher risk assets, such as DEFs on Ethereum, and expectations for further inflows for ETFs ETH. Other Altcoins, such as Solana or BNB, also recorded double -digit increases, with BNB beating their own ATH above 900 USD.
Powell’s speech can mean the beginning of a new bull market phase, especially in the crypto sector, where fluidity plays a key role. Investors will now track employment data (September 5) and inflation that can confirm the Fed direction. Will ETH reach 5,000 USD? The market is definitely ready for more Volatility.
More bulls
Vaneck submitted an application for ETF on Solan with the option of staking, following Jitosol, i.e. stapled Sol with prizes – this is the first such product in the USA that could attract a lot of traditional investors, offering them exposure to Solan Plus Yield from Staking at the level of up to 7.2%. Filing S-1 went to SEC after the regulators decided that Liquid Staking is not Security, which opens the door for Altcoins, Vaneck positions it as a bridge between Tradfi and DEFI, with Jitosol as the key to toxenized asset. Solana now has only 3.3% penetration in Liquid Staking, compared to 28% Ethereum, which means the potential for USD 50 billion, and JTO as a Governance token can gain here. This could conquer SOL adoption, especially since the price is tested by USD 200 resistance, and analysts see here structural shift with institutional flows, because if SEC approves, then Game Changer for the entire Solana ecosystem.
Several companies like Grayscale, BitWise or 21shares have improved the applications for ETF on XRP, adding flexible options for creating and redemption in XRP or cash, it looks like a very positive signal from SEC, especially after the court closed the Ripple vs Sec case, giving regulatory clarity. Seven companies, including Canary, Coinshares, Franklin and Wisdomtree, submitted S-1 applications on the same day, which experts call “cluster” and “very good sign”, with 95% chance of approval until October. Grayscale even submitted fresh S-1 for XRP Trust ETF, positioning XRP as an asset for Cross-Border payments. It is after winning Ripple, where SEC can no longer appeal what Hype conquers, and XRP can enter the institutional phase with banks in the USA, and analysts see bull catalysts like ETF approval and wider adoption.
Hong Kong took off with the ETF spot on BTC and ETH, specifically Microbit launched two funds on HKEX on August 21, with Initial Asset size 220 million USD, offering low Fee and direct exposure to the top cryptocurrency in HKD and USD, it makes it easier for investors in Asia to access Krypto without keeping the coins. The debut after the announcement of Stablecoin Rules, which shows how HK is positioned as pro cripto, with transparent regulations. Small volumes at the start, but this is a step to greater adoption, especially since in the USA speculates about ETFs on XRP and Solana. Microbit emphasizes compliance and transparency, which attracts institutions. This additionally drives a global hype, because Asia is growing in Crypto, and these ETFs can attract more capital from Tradfi.
Coinbase added Stablecoin USD1 from the World Liberty Financial, which is associated with Trump, its delivery has already reached USD 2.4 billion after a mine $ 205 million for Treasura, which suggests that he may soon find full records and attract political capital. USD1 to ERC-20 Pegged 1: 1 to the dollar, protected USD and funds, multi-chain (ethereum, binance, throne, plume), with integrations like Uniswap. The Trump family has 40-60%, they have already earned USD 500 million, and the project is positioned as a defa platform with lending and tokenized asset. Listing on Coinbase is to help adoption, after a similar binance with a 2 billion deal from Abu Dhabi, plus partnerships from the Alt5 Sigma for 1.5 billion of treasure. This intensifies the competition in Stablecoin, with USD1 as “a new chapter for stable coins”, although it is closely related to Trump, and for the whole crypto it is another bridge to mainstream.
As you can see, it happens well! Let’s watch the whole market closely and be ready for various scenarios. If more data from the US proves to be the crypto and force the Fed to cut feet in September, we can expect to enter the long -awaited Altseason.
