Fed Pivot Spurs Crypto Rally
On August 23, 2025, Ether jumped toward the $5,000 mark while Bitcoin approached record highs following a dovish speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium. Powell’s suggestion of potential rate cuts later this year invigorated market expectations, leading to a sharp rebound in cryptocurrencies as risk assets regained favor.
Analyst Projections
Asset managers from Monarq Asset Management project Ether surpassing $5,000 in the near term, citing constructive market internals and growing institutional demand. Bitcoin is expected to challenge its all-time high as treasury-driven inflows and ETF flows gather momentum. Sam Gaer, Chief Investment Officer at Monarq, highlighted robust demand for both assets, driven by favorable macro conditions and ongoing retail and institutional contributions.
Potential Risks
Despite bullish outlooks, analysts emphasize the importance of monitoring corporate treasury adoption strategies and overall equity market health. Digital Asset Treasuries (DATs) have seen increased issuance, but concerns over deal quality and compliance frameworks may pose headwinds. Elevated equity volatility could also temper speculative flows into crypto markets.
ETF Inflows and On-Chain Signals
Spot Ether ETFs have recorded substantial net inflows, elevating total assets under management above $12 billion. On-chain data reveals heightened call option demand for Ether, suggesting bullish positioning among derivatives traders. Bitcoin also saw increased auction activity around the $113,000 level, with whale accumulation signals supporting a resilient market structure.
Outlook and Strategy
Traders are advised to track ETF flow data and corporate treasury announcements to assess the durability of this rally. Sustained inflows and favorable rate-cut signals could propel both Bitcoin and Ether to new highs, but caution is warranted amid potential liquidity constraints and macroeconomic shifts. Market participants will be watching support levels and derivative skew metrics for confirmation of trend continuation.
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