The post Bitcoin Drops Under $113K As Post-Fed Rally Quickly Unwinds appeared on BitcoinEthereumNews.com.

Welcome to the Asia Pacific Morning Brief—your essential digest of overnight crypto developments shaping regional markets and global sentiment. Monday’s edition is last week’s wrap-up and this week’s forecast, brought to you by Paul Kim. Grab a green tea and watch this space. The cryptocurrency market rallied following Federal Reserve Chair Jerome Powell’s Jackson Hole speech last week. While Powell’s policy changes appeared hawkish on paper, his shifted tone toward employment concerns boosted investor confidence. Bitcoin gained 4% and Ethereum surged over 13%, with markets now expecting a September rate cut. A Market Reversal: All Eyes on Fed’s Pivot After digesting Federal Reserve Chair Jerome Powell’s much-anticipated Jackson Hole speech, the cryptocurrency market turned positive last week. Powell’s perceived tone shift and rising September rate cut expectations sent risk assets, including Bitcoin, soaring despite his potentially hawkish address. Jay Powell’s speech at Jackson Hole had many fearing a long-term hawkish stance, but the outcome was surprisingly optimistic. Bitcoin jumped roughly 4% and Ethereum surged over 13% after the speech as investors focused on Powell’s subtly changed demeanor over hawkish details. The Fed signaled the end of its “Average Inflation Targeting” (AIT) framework in a significant policy shift. This policy had previously allowed it to tolerate inflation moderately above the 2% target. The central bank signaled a cautious stance, demanding significant labor weakness before cutting rates. These changes were bearish on paper, making future monetary easing more difficult. Yet, the market rallied. The primary reason was a notable change in Jerome Powell’s tone. As recently as the July FOMC meeting, Powell had firmly prioritized inflation, drawing a clear line against imminent rate cuts. At Jackson Hole, however, he repeatedly highlighted the downside risks to the labor market. He stressed the need for policy adjustments, which many saw as a signal for rate cuts. Powell…

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Filed under: News - @ August 25, 2025 1:22 am