"Virtual Asset Investor Sentiment Recovers to 'Greed'... BTC & ETH Surge on Powell's 'Dovish' Comments"

After Jerome Powell, Chair of the U.S. Federal Reserve (Fed), hinted at the possibility of a rate cut in September, reports state that the virtual asset (cryptocurrency) market rebounded, returning investor sentiment to the 'Greed' zone.

According to crypto-focused media outlet Cointelegraph on the 23rd (local time), the 'Crypto Fear & Greed Index,' which gauges market sentiment, recorded a score of 60 on this day. This marks a 10-point increase from the 'Neutral' score of 50 just a day earlier, reversing the brief stay in the early-week 'Fear' zone.

The rebound came immediately after Powell commented at the Jackson Hole Economic Policy Symposium that changes in inflation and employment conditions may necessitate policy adjustments. The market interpreted his remarks as leaving the door open for a possible rate cut at the September Federal Open Market Committee (FOMC) meeting.

Following Powell's comments, Bitcoin (BTC) jumped 5% to break through $117,300, while Ethereum (ETH) also surpassed its previous all-time high set in 2021.

Jeffrey Zirlin, co-founder of Axie Infinity, noted, "Ethereum is the asset most sensitive to (market) interest rates," adding, "As rates come down, the yield gap between decentralized finance (DeFi) and bank deposits widens, which could spur greater demand."