Bitcoin News Today: Ether (ETH) Likely to Top $5K, BTC Eyes Record High as Powell Sparks Rally; Watch for DAT Deal Risks: Asset Managers

Cryptocurrencies surged late Friday after Federal Reserve President Jerome Powell struck a dovish tone on the Jackson Hole financial symposium, defying market expectations for a extra hawkish stance. That has prompted asset managers to name for new all-time highs for bitcoin BTC$114,657.78, ether (ETH) and choose altcoins.

What did Powell say?

In considered one of his most necessary speeches, Powell recommended that the labor market may benefit from decrease borrowing prices, having held the benchmark rate of interest regular at 4.25% for eight months.

“Downside risks to employment are rising,” Powell mentioned in ready remarks for his keynote speech on the Jackson Hole Symposium, including that the potential of President Donald Trump’s tariffs having solely a short-lived impact on inflation is “reasonable.”

“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” he famous.

Cryptocurrencies and shares soared, and the chance of the September Fed charge lower jumped to 90% following the speech. Most analysts anticipate the momentum to proceed within the days forward.

Analysts see new highs for BTC and ETH above $5K

Analysts at Monarq Asset Management anticipate that ether’s worth will rise above $5,000 within the coming days.

“We maintain our overall bullish stance. Market internals remain constructive, with few signs of overheating and, as you point out, a clear path to new all-time highs in both BTC and ETH,” Sam Gaer, chief funding officer of Monarq Asset Management’s Directional Fund, instructed CoinDesk.

“Our house view is that Powell’s dovish pivot has cleared the way for $5,000+ in the near term (also not the hardest call to make). Demand from treasury vehicles should increase into the fall as many of the deals announced this summer close or de-SPAC, in addition to ongoing institutional and retail inflows,” Gaer added.

Ethereum’s native token ether has already gained almost 10% in 24 hours, hitting report highs above $4,800. As of writing, it modified palms at $4,700, in accordance to CoinDesk knowledge. Meanwhile, market chief bitcoin traded close to $115,600, barely down from the in a single day excessive of $117,400.

Data from Deribit-listed choices exhibits that ether’s rally has sparked renewed demand for upside bets, or name choices. At press time, threat reversals have been constructive throughout all tenors, implying relative richness of calls. The sentiment wasn’t so bullish in BTC choices.

Gaer acknowledged that over-the-counter desks and market makers are experiencing stronger demand for ETH in contrast to BTC, suggesting that ether might outperform forward.

That mentioned, BTC regarded sturdy by itself, too. “The BTC pullback from ATH was ~9.6%—far less than earlier drawdowns this year—indicating strong demand, as evidenced by whale wallet accumulation around the $113k level,” Gaer mentioned.

Spencer Yang, managing associate at BlockSpaceForce, a crypto treasury advisory agency, mentioned extra charge cuts may occur after September, making certain the momentum extends effectively into the year-end.

“We’re now fully expecting rate cuts to happen in September. It will be the first cut since Trump became President this year. This is significant, and many more will come,” Yang mentioned, calling new highs within the crypto market.

“The major 5 that we pay attention to: BTC, ETH, BNB, SOL, LINK. These will do well given the various parts of the crypto industry they impact,” Yang added.

Focus on ETF flows

Steve Lee, co-founder and managing associate at Neoclassic Capital and investor in BlockTower Capital, referred to as Powell’s dovish flip a short-term constructive improvement for cryptocurrencies whereas stressing the significance of continued inflows into bitcoin and ether spot ETFs.

“I see this as constructive in the short term, and it may help reverse this week’s sell-off. The key question is whether this momentum holds beyond the low-liquidity weekend. Since BTC and ETH price action is increasingly institutionally driven, spot ETF flows today and Monday will be a strong indicator of whether we are set for another leg higher,” Lee instructed CoinDesk.

Lee highlighted Base, Monad, Story, and SUI as key tasks of curiosity that he’s carefully monitoring in his capability as an early-stage enterprise capitalist.

Gaer, in the meantime, favored Solana and the SOL ecosystem, together with high-beta SOL tokens such as JITO and JUP. Raydium and PUMP on each a “fundamental and forward-demand basis.”

Potential headwinds

While Powell’s dovish stance has set the stage for a rally, merchants ought to stay cautious about potential pitfalls from company treasury cryptocurrency adoption and volatility in fairness markets.

“Digital asset treasuries” (DAT) are an modern car for public market buyers to acquire publicity to the digital asset area. However, we have now began to see the standard of DAT offers – from banking relationships, compliance, administration staff, and deal construction views — dropping, which exhibits early indicators of a ‘bubble,” Lee said.

Naqsdaq-listed Strategy started this trend of corporate BTC adoption in 2020. Since then, more than 100 publicly-listed firms have accumulated a total of 984,971 BTC, according to data source Bitcoin Treasuries.

“The pattern might proceed, however it’s apparent that the dangers related to this are usually not ignorable,” Lee added.

Gaer called for closely tracking risks from an overheated equity market and “potential for macro or geopolitical shocks.”