Bitcoin (CRYPTO: BTC/USD) shares climbed more than 4% Friday to trade above $117,000 as cryptocurrencies surged on fresh signals from the Federal Reserve.
What To Know: Powell acknowledged persistent inflation concerns but also highlighted weaknesses in the labor market, a combination that investors took as a dovish tilt in policy. His comments reignited risk appetite across financial markets, with cryptocurrencies seeing some of the strongest gains.
The move pushed Bitcoin firmly above the $116,000 level, which traders identify as a critical zone tied to monthly opens and key trend markers. Some traders, however, warned of sentiment swings, noting the asset was trading at nearly the same level a week ago despite dramatic shifts in mood between optimism and fear.
Ethereum also rallied, climbing above $4,600 in what traders described as one of the largest hourly price candles ever seen for the token. Technical analysts suggested ETH may be on the verge of breaking an eight-year downtrend against Bitcoin, a move that could fuel further relative strength. XRP crossed the $3 mark, prompting speculation of renewed price discovery, while Solana, Dogecoin, and other major altcoins followed higher.
While Powell's remarks did not guarantee a cut, the acknowledgment of economic challenges was enough to spark a sharp rotation back into crypto. For now, Bitcoin leads the move higher, but whether the rally can sustain depends on both macro follow-through from the Fed and the market's ability to build on these breakout levels.
BTC Price Action: Bitcoin shares were up 4.17% at $117,253.92 at the time of writing, according to Benzinga Pro.
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