"Ethereum Expected to Surpass $5,000... BTC and ETH Rally Following Powell's Remarks"

After dovish (preference for accommodative monetary policy) remarks by Jerome Powell, Chair of the Federal Reserve (Fed), both Bitcoin (BTC) and Ethereum (ETH) surged together, raising the possibility of further gains.

According to cryptocurrency-specialized media outlet CoinDesk on the 23rd (local time), Chair Powell stated in his speech at the Jackson Hole Economic Policy Symposium the previous day, "There is increased downside risk to employment, and policy adjustments may be needed depending on changes in the risk balance." The market interpreted these remarks as hinting at a potential rate cut in September. As a result, both crypto assets and the stock market rebounded sharply.

On this day, Bitcoin soared to $117,400 before trading around $115,600. Ethereum also rose more than 10%, reaching a new intraday all-time high of $4,887.

Sam Gaer, CIO of Monarq Asset Management, said, "Chair Powell’s dovish shift has paved the way for both BTC and ETH to reach new all-time highs," adding, "Ethereum could surpass $5,000 in the short term."

However, risk factors were also pointed out. Spencer Yang, Managing Partner at BlockSpaceForce, predicted, "Additional rate cuts may follow after next month, suggesting a long-term rally," but also warned, "the deterioration in the quality of 'Digital Asset Treasury (DAT)' strategies and stock market volatility could act as variables."

Steve Lee, Co-founder at Neoclassic Capital, commented, "Whether ETF inflows continue will be crucial," and added, "If the momentum of spot BTC and ETH ETFs is maintained over the weekend and into early next week, another rally could be possible."

The media outlet explained, "Bitcoin saw a clear surge in whale wallet buying pressure around the $113,000 level, while Ethereum displayed pronounced call option bullishness in the options market."