Bitcoin Price Surpasses $63,000 After Jerome Powell’s Jackson Hole Speech

Next up is the Fed chairman Jerome Powell’s speech at the Jackson Hole conferencewhere he hinted at potential interest rate cuts and emphasized the need for policy adjustments, the crypto market saw a notable rise. Bitcoin, which had been struggling to break the $60,000 resistance level, finally did, gaining momentum from Powell’s dovish tone.

By Friday afternoon, Bitcoin was up nearly 5%, breaking the $63,000 mark. Ether, the second largest cryptocurrency by market capitalization, also benefited from the bullish sentiment, climbing more than 4% to reach $2,700. The positive market movement was not just limited to Bitcoin and Ether. Other major cryptocurrencies, including Solana, Dogecoin, Cardano, and Avalanche, also saw significant gains, with increases of over 4%, 6%, 4%, and 8%, respectively. In general, global crypto market capitalization reached $2.22 trillion, representing a jump of over 4% in the last 24 hours.

This broad growth in the crypto market highlights the strong correlation between macroeconomic signals and the performance of digital assets. Investors appear to be reacting optimistically to the possibility of more accommodative monetary policy, which could boost interest in riskier assets such as cryptocurrencies.

While spot Bitcoin ETFs are doing well, spot Ether ETFs are struggling

Meanwhile, identify Bitcoin ETFs have performed exceptionally well over the past week with consistent inflows and no outflows recorded. According to data from Bitcoin ETF tracker Farsidestotal inflows into spot Bitcoin ETFs reached $17.6 billion. The group is led by BlackRock (BLACK) IBIT, which has seen $20 billion in inflows to date, making it the best-performing spot Bitcoin ETF. Grayscale’s on the other hand (GBTC) GBTC saw significant outflows totaling $19 billion.

Instead, investors showed little interest spot Ether ETFs in the last week. Unlike Bitcoin ETFs, spot Ether ETFs have only seen outflows, with no days of positive inflows. Spot Ether ETFs combined saw $459 million in outflows, according to Farsides data. Among them, BlackRock’s (BLACK) ETHA managed to attract $1 billion in inflows, while Grayscale’s ETHE fared the worst, suffering $2.5 billion in outflows.

This divergence between Bitcoin and Ether ETFs reflects differing investor sentiment, with Bitcoin maintaining strong appeal while Ether faces ongoing challenges.