Ethereum Breaks New Record After Fed Rate Cut Hopes
Ethereum (ETH) soared more than 15% in just 24 hours and broke its 2021 record price of $4,869. On August 22, ETH was trading around $4,888 and still moving upward.
The rally came after U.S. Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts during a speech at the Jackson Hole symposium. His comments lifted the entire crypto market by more than 4% in an hour, pushing its total value back above $4 trillion.
Markets now expect a Fed rate cut in September, with betting odds for a 25-basis-point cut jumping from 57% to 79% after Powell’s speech. Analysts say Powell is shifting focus from fighting inflation to supporting jobs, which investors see as positive for risk assets like crypto.
Crypto and Stocks Rally Together
- Bitcoin rose over 4% to about $117,000.
- BNB hit a new record at $900, up 7%.
- XRP, Solana, and Dogecoin all gained double digits.
- U.S. stock markets (S&P 500, Nasdaq, Dow Jones) also climbed about 2%.
- The U.S. dollar weakened as gold and other assets gained.
From Low to High
This surge marks a big comeback for Ethereum, which had fallen to $1,385 in April 2025, its lowest since 2023.
The price rally hurt many leveraged traders. In the past 24 hours, over $553 million was liquidated — with short sellers losing the most. Ethereum led liquidations with $251 million, followed by Bitcoin at $102 million.
If the Fed does cut rates in September, liquidity could rise even more and keep the crypto rally going, as markets remain closely tied to U.S. monetary policy.
