Bitcoin Soars Above $116,800 as Powell’s Fed Shift Boosts Crypto Demand

Bitcoin (BTC) surged on Friday, breaking above $116,800, as optimism around Federal Reserve policy shifts reignited demand for digital assets. 

The move comes just hours after Fed Chair Jerome Powell hinted that the central bank could begin easing rates sooner than markets had expected.

Bitcoin price action

According to CoinMarketCap, Bitcoin is trading at $116,890, up 3.5% in the past 24 hours. Its market capitalization now exceeds $2.32 trillion, while daily trading volume jumped to $69.13 billion, a 15.3% increase from the previous session.

With 19.9 million BTC already in circulation and only 21 million total supply, the supply squeeze narrative continues to underpin price momentum. Analysts highlight that macro-driven rallies often amplify Bitcoin’s role as a “scarcity asset,” attracting institutional buyers during liquidity shifts.
Powell speech sets the tone

At the Jackson Hole summit, Powell noted that monetary policy is already in restrictive territory and flagged the potential for interest rate cuts in the coming months. Markets reacted swiftly, with the CME FedWatch tool showing a 91% probability of a September cut.
While equities gained broadly – the Dow Jones climbed 732 points – Bitcoin outperformed as investors rotated into assets seen as hedges against both inflation and monetary debasement.

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Outlook for Bitcoin

Bitcoin’s sharp breakout above the $115,000 resistance zone now places the next technical target near the $120,000 level, where traders expect heavy profit-taking. If momentum holds, analysts suggest BTC could test new all-time highs before year-end.

Still, short-term volatility remains likely, particularly as macroeconomic data and Fed commentary continue to drive investor sentiment. Yet, with liquidity conditions easing and institutional inflows persisting, Bitcoin appears poised to remain one of the primary beneficiaries of Powell’s policy pivot.

Bitcoin’s rally underscores its unique position in global markets: a scarce, decentralized asset that thrives in times of monetary transition. Powell’s Jackson Hole speech may have sparked Wall Street’s rally – but Bitcoin is stealing the spotlight.