Key Insights:

• Bitcoin and Ether have surged to their highest levels in three weeks during Friday afternoon trading in the U.S.
• These two leading cryptocurrencies had struggled recently as investor attention shifted towards alternative tokens such as Solana (SOL) and Dogecoin (DOGE).

Market Behavior

The recent positive momentum in major cryptocurrencies has been primarily noted in altcoins like Solana and Dogecoin. Over the last week, Solana has seen a 17% increase, while Dogecoin’s value has jumped by 25%. Factors like upcoming ETFs and new crypto treasury companies focusing on these assets have fueled this growth.

With capitals flowing elsewhere, Bitcoin at approximately $115,953 and Ether at $4,650 started attracting bids as the U.S. trading day concluded. These prices represent the highest values since the price volatility seen after Federal Reserve Chair Jerome Powell’s remarks in August.

Powell’s unexpected shift from a hawkish to a doves stance concerning monetary policy has ignited widespread speculation regarding looser financial conditions, with traders anticipating a potential interest rate cut in September.

Next Steps

The anticipation surrounding the Federal Reserve’s meeting is palpable, with traders largely convinced that a rate reduction between 25 to 50 basis points is forthcoming. Analysts are keenly observing how this will influence cryptocurrency prices further.