In a potentially surprising move for market watchers expecting a hawkish stance, Jerome Powell, the Chair of the Federal Reserve, indicated on Friday that a rate cut could be on the agenda for September. Speaking at the Kansas City Fed’s Economic Symposium in Jackson Hole, he stated that the evolving risks might necessitate a change in monetary policy.

“Downside risks to employment are rising,” said Powell. “If those risks materialize, they can do so quickly with sharply higher layoffs and increased unemployment.”

Bitcoin has experienced a notable increase of approximately 2% since these remarks were released, climbing to around $114,200. Concurrently, U.S. stocks reported gains exceeding 1%, with the 10-year Treasury yield decreasing by six basis points to 4.27%. The dollar index dipped around 0.5%, while gold prices increased by 0.6%.

In the days prior to Powell’s address, cryptocurrency markets, along with others, had been under substantial pressure as speculation mounted about the Fed’s tone. Just a week ago, Bitcoin peaked above $124,000 but subsequently fell nearly 10% to $112,000 as expectations shifted regarding the likelihood of a rate cut.

As Powell’s address concluded, market expectations for a September rate cut notably increased, now approaching 90% according to the CME FedWatch Tool. Meanwhile, Ether (ETH) also experienced a drop, down about 12% but has bounced back nearly 8% post-speech, demonstrating the volatility in response to Federal Reserve signals.