Bitcoin: the Fear & Greed index climbs 10 points in 24 hours

While Jerome Powell surprises everyone at Jackson Hole by a more accommodating tone, Bitcoin and Ether find symbolic peaks. Investors, doped by the prospect of a drop in rates in September, are again rushing into risky assets. But can this euphoria last?

Explosion of Haussier, Bitcoin and Ether feeling in full euphoria

The president of the American federal reserve, Jerome Powell, sparked a real earthquake on the Crypto markets on Friday.

During the Jackson Hole annual economic symposium, he suggested that current conditions could justify an adjustment of monetary policy. A brief sentence that was enough to transform the mood of investors.

The Crypto Fear & Greed index, an essential barometer of the market feeling, jumped from 10 points in just twenty-four hours. Passed from 50 (“neutral” area) to 60 (“greed” area), he signed a spectacular reversal, all the more striking as he had still changed in the “fear” at the start of the week.

Cryptos immediately reacted to these accommodating signals. Bitcoin increased by 5 %, crossing the $ 117,300, while causing the brutal liquidation of almost $ 380 million in short positions. The investors who bet on a withdrawal were taken short.

But it was Ethereum who was most sensitive to Powell's announcement. The asset has come close to its historic record from 2021 to 4,878 dollars, reaching an intrajurnal peak of 4,887 dollars, or a flight of more than 12 % in 24 hours. A brilliant demonstration of its reactivity to rate dynamics.

“” Ethereum is the most sensitive aspect of crypto rates “, Reminds Jeffrey “Jiho” ZirlinCo -founder of Infinity Axie.

Lower rates mean more stable -to -go influx to Ethereum.

The markets bet on September

The traders were quick to react. According to The Fedwatch tool of the CME, almost 75 % of market players now anticipate a drop in rates at the Fed meeting scheduled for September 17. This high probability illustrates a widely shared conviction: the time for a monetary softening is approaching.

“” It seems that the president of the Fed, Powell, prepares the ground for a drop in rates in September. », Observe The Kobeissi Letteran influential financial publication to Wall Street.

Historically, each monetary relaxation cycle had the effect of increasing liquidity and strengthening the attraction of risky assets. Cryptos, in particular, appear at the top of the list of these beneficiaries.

However, consensus is not yet total within the federal reserve. Alberto Musalem, president of the Fed of Saint-Louis, somewhat cooled enthusiasm on Friday.

In a Interview with Reutershe said he still needed more time to decide if he would support a drop in rates, adding that he would update his position up to two or three days before the meeting.

In the Crypto community, several observers had already anticipated a prices. Some believed that a more conciliatory speech by Powell would open the way to a rapid and marked increase in the market. Others insisted on the strategic importance of Jackson Hole, perceived as a decisive moment for the future orientation of cryptos.

In short, caution remains in order. The return to greed on the Fear & Greed index can also point out an excess of optimism. Crypto markets remain unpredictable and sensitive to the declarations of central bankers. Less accommodating communication could quickly cool the current euphoria.