Bitcoin price charges to $116K as Fed’s Powell hints at interest-rate cut

Bitcoin reclaimed $116,000 on Friday after Federal Reserve Chair Jerome Powell hinted at rate cuts during his Jackson Hole address. The BTC/USD pair rallied 3.2% from $112,650 in a matter of minutes, reflecting the market’s sensitivity to macroeconomic cues. Volume on major exchanges spiked by 45%, indicating broad participation across spot and derivatives markets.

Data from Cointelegraph Markets Pro showed a 120% increase in funding rates for perpetual futures against a backdrop of declining US dollar strength. The CME FedWatch Tool shifted to price a 75% probability of a 25-basis-point rate cut at the September FOMC meeting. This shift reignited risk-asset flows, with Bitcoin outperforming other major assets during the session.

Short-term technical signals flipped bullish as the 4-hour moving average convergence divergence (MACD) crossed above its signal line and the relative strength index (RSI) rebounded from oversold territory at 32 to 58. Order-book data revealed bid clusters near $115,000, providing a strong support zone. On-chain metrics showed a 15% drop in exchange reserves over the past week, underscoring reduced sell-side pressure.

Institutional demand returned, evidenced by rising open interest in Bakkt futures and renewed inflows into Bitcoin spot ETFs. Market data provider CryptoQuant reported that wallet addresses holding over 100 BTC increased by 12 in the past 24 hours, suggesting accumulation by large investors. Meanwhile, long liquidation events remained muted compared with previous market shocks.

Key resistance sits at $118,500, followed by $120,000 and $122,000, where significant sell-side interest could emerge. A confirmed close above $118,500 on daily timeframes may pave the way for a retest of $125,000. Market participants will monitor upcoming US economic data and Powell’s post-meeting commentary for further directional cues.