In the morning, Bitcoin (BTC) bulls were on the rise, following the dovish remarks by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium in Wyoming, which boosted market sentiment and propelled asset prices from stocks to cryptocurrencies and precious metals to soar.

Data provided by TradingView shows that since hitting a low near $60,100 around noon on Thursday, BTC has been rallying significantly.

In the early hours of Friday, the coin climbed above $61,000, pausing to consolidate before Powell's speech.

"It's time to adjust policy" was the only comment from Powell that the market needed to hear.

This triggered a surge in prices across all asset classes, with major indices now up by more than 1%.

Advertisement

Spot gold prices rebounded above $2,515, up 1.24% during the session.

Bitcoin prices surged by 2%, reaching a high of $62,347, before the "sell the news" crowd took profits, causing it to currently trade back down to $61,404.

Bitcoin was essentially consolidating before Powell's Jackson Hole speech, and although volatility was significant, analysts expected that Bitcoin would resume its upward trend now that rate cuts have been put on the agenda.

Rachel Lin, co-founder and CEO of SynFutures, said, "We've had another week of essentially sideways consolidation, but Bitcoin has once again broken through the key $60,000 level this week, and it remains above that level."

"After being strongly rejected by the region last week, Bitcoin hit a new low of $56,000, and since then, it has been steadily recovering, reclaiming the $60,000 mark," she noted.

"Although weeks of consolidation like this may feel calm for cryptocurrency traders, they are crucial for Bitcoin's long-term health," Lin observed.

"Over the past few months, Bitcoin has established a solid support base in the range of $60,000 to $70,000."

Lin noted, "The monthly chart for Bitcoin shows that the asset has been consolidating near its 2021 highs for over six months."

"If Bitcoin breaks through this range now, it could have a stronger upward momentum than when it broke through earlier this year," Lin said.

"In terms of derivatives, the market sentiment remains bullish."

"For Bitcoin, the highest open interest is in the December $100,000 call options.

The derivatives market for Ethereum is equally optimistic, with the highest open interest in the September $4,000 call options, followed by the December $6,000 call options.

Notably, the top 10 open interest for both Bitcoin and Ethereum are all call options, with no significant put options."

She also pointed out that after the flash crash during the unwinding of the yen carry trade, "the stock market has returned to a bull market."

Lin said, "Both the Nasdaq and the S&P 500 have erased most of their earlier losses.

The Nasdaq is now just 4% away from its all-time high, and the S&P 500 is less than 1% away from its all-time high."

"The strong rebound in the stock market can be attributed to diminishing concerns about potential conflicts in the Middle East, as well as the release of the latest Federal Reserve meeting minutes, which indicate growing support for a rate cut in September."

She concluded, "Overall, this has been a week of strong stock market performance and a week of mediocre performance for the cryptocurrency market."

"Although the poor performance of cryptocurrencies is concerning, it is still a solid bullish trend."

According to Ki Young-Ju, founder and CEO of CryptoQuant, historical data shows that the second phase of the bull market after Bitcoin's halving usually begins in the fourth quarter, and he expects the same this time, saying, "Whales won't let the fourth quarter be mediocre and boring in terms of year-over-year performance."