The cryptocurrency market witnessed a powerful rally on August 24, as Bitcoin surged above $64,000 following dovish remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium. The price spike, which saw Bitcoin climb over 5%, reflects renewed investor confidence amid shifting macroeconomic expectations and growing demand from U.S. investors.
This surge marks a pivotal turnaround after weeks of consolidation below the $60,000 threshold—a level many analysts considered critical for market sentiment.
Fed’s Policy Shift Sparks Market Rally
At the annual Jackson Hole symposium, Powell signaled that the Federal Reserve may begin adjusting interest rates in response to cooling inflation and labor market softening. While no immediate rate cut was announced, the mere suggestion of a policy pivot was enough to ignite risk assets across financial markets—including Bitcoin.
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Markets interpreted the comments as a green light for looser monetary conditions ahead, which historically favor high-growth, non-yielding assets like cryptocurrencies. Within hours of Powell’s speech, Bitcoin jumped from around $60,000 to peak at $64,955—the highest level since August 2.
According to Binance market data, Bitcoin reached a new price of $64,212.91 at press time, representing a 5.12% gain. The rally also triggered a wave of liquidations among short sellers, with Coinglass reporting $1.75 billion in total liquidations over the past 24 hours—$1.34 billion of which came from long-squeezed bearish positions.
Core Keywords:
- Bitcoin price surge
- Federal Reserve rate cut expectations
- Jackson Hole symposium 2025
- Bitcoin ETF inflows
- U.S. crypto investor demand
- Market volatility and liquidations
- Macro-economic impact on crypto
- Coinbase Premium Index
U.S. Investor Demand Rebounds Sharply
One of the most telling signs of renewed appetite came from the Coinbase Premium Index (CPI), which measures the price difference between Bitcoin on Coinbase and Binance. Julio Moreno, Head of Research at Crypto Quant, noted on social media that the CPI hit its highest level in 39 days—indicating strong buying pressure from U.S.-based investors.
Typically, a rising premium suggests increased domestic demand, while negative values signal selling pressure. Notably, just before the "Crypto Black Monday" event on August 5—when Bitcoin fell below $50,000—the CPI had dipped below -0.10. Now, its rebound underscores a dramatic shift in market psychology.
This surge in demand aligns with broader macro trends. With expectations of lower interest rates, investors are reallocating capital toward alternative assets. Bitcoin, often viewed as digital gold or an inflation hedge, stands to benefit significantly in such environments.
Short Sellers Wiped Out in Rapid Price Move
The suddenness of the rally caught many bearish traders off guard. As Bitcoin broke key resistance levels, leveraged short positions were rapidly liquidated across major exchanges.
Data from Coinglass shows nearly 63,000 traders were liquidated within 24 hours—a stark reminder of the risks involved in betting against volatile assets during uncertain macroeconomic transitions. The $1.34 billion in short liquidations represents the highest level since early August, highlighting how quickly sentiment can flip in crypto markets.
Such events often fuel further upward momentum through what’s known as a “short squeeze,” where forced buying to cover positions pushes prices even higher.
Bitcoin vs. Ethereum ETF: A Tale of Two Markets
While Bitcoin continues to dominate investor inflows, Ethereum’s newly launched spot ETFs are struggling to attract sustained interest.
One month after their U.S. debut, nine spot Ethereum ETFs have experienced seven consecutive days of outflows—the longest losing streak since their July 23 launch. In contrast, spot Bitcoin ETFs have seen consistent daily inflows during the same period.
On Friday alone, Bitcoin ETFs recorded $251 million in net inflows—the highest single-day total since July 16. Major funds like BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC collectively absorbed nearly $50 million in fresh capital.
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Why Is Bitcoin Outperforming Ethereum?
Analysts point to several factors:
- First-mover advantage: Bitcoin remains the default entry point for traditional investors entering crypto.
- Perceived safety: As the largest and most widely held digital asset, Bitcoin is often seen as less risky than altcoins.
- Institutional preference: Many institutional portfolios prioritize Bitcoin due to its established track record and clearer regulatory positioning.
Noel Acheson, author of the CryptoIs Macro Now newsletter, explained: “Bitcoin is still the go-to asset for traditional investors dipping into crypto. While Ethereum may catch up as diversification becomes more important, Bitcoin is likely to maintain its lead for now.”
Stephen Ohlitz, Co-Founder and CEO of FRNT Financial, added: “It’s not surprising that ETF investors are de-risking slightly ahead of Jackson Hole and adjusting to changing rate expectations. They’re favoring the most liquid and trusted asset—Bitcoin.”
Frequently Asked Questions (FAQ)
Q: What caused Bitcoin’s price surge on August 24?
A: The rally was primarily driven by Federal Reserve Chair Jerome Powell’s comments at Jackson Hole suggesting a potential shift toward lower interest rates. This boosted risk appetite and led to strong buying pressure, especially from U.S. investors.
Q: Why is the Coinbase Premium Index important?
A: The index reflects the price difference between Coinbase and offshore exchanges like Binance. A rising premium indicates stronger demand from U.S. buyers, serving as a real-time gauge of domestic investor sentiment.
Q: Are Ethereum ETFs underperforming compared to Bitcoin ETFs?
A: Yes. Since their launch in July, Ethereum ETFs have faced prolonged outflows, while Bitcoin ETFs continue to see daily inflows—highlighting investor preference for Bitcoin as a core holding.
Q: How much did short sellers lose during the rally?
A: Over $1.34 billion in short positions were liquidated within 24 hours, part of a total $1.75 billion in overall liquidations—signaling a sharp reversal in market momentum.
Q: Is this rally sustainable?
A: Sustainability depends on macroeconomic developments, including actual rate cuts, inflation data, and continued institutional inflows. However, the current momentum suggests strong underlying demand.
Q: What role do ETFs play in current market dynamics?
A: Spot ETFs provide regulated exposure to crypto for traditional investors. Strong inflows into Bitcoin ETFs indicate growing institutional confidence and could support long-term price appreciation.
Final Outlook: Macro Meets Crypto
The recent surge reaffirms a growing truth in modern finance: crypto is now macro.
Bitcoin’s performance is no longer isolated from global monetary policy—it reacts swiftly to shifts in interest rate expectations, liquidity conditions, and investor risk appetite. As traditional and digital asset markets converge, understanding macroeconomic signals becomes essential for navigating crypto volatility.
With rate cuts potentially on the horizon and institutional adoption accelerating through ETFs, Bitcoin appears well-positioned for further gains—if macro conditions hold.
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While Ethereum faces near-term headwinds in attracting ETF capital, its long-term fundamentals remain intact. For now, however, all eyes are on Bitcoin as it reclaims technical strength and investor confidence alike.
As markets evolve, one thing is clear: those who ignore the link between central bank policy and digital assets do so at their own risk.