Bitcoin Surges to Nearly $64K, as Fed Hints at Policy Shift at Jackson Hole

According to The Block: Bitcoin spiked above the $64,000 mark following a dovish announcement from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, signaling potential rate cuts on the horizon.U.S. equities also responded positively, with the S&P 500 and Nasdaq gaining 1.2% and 1.8%, respectively, in early Friday trading.Powell expressed growing confidence that U.S. inflation is on a sustainable path back to the 2% target, hinting at upcoming adjustments to interest rates. "The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks," Powell stated during the central bankers' conference in Wyoming.Following Powell's remarks, the global cryptocurrency market capitalization reached $2.28 trillion, a 0.6% increase in the last 24 hours, according to CoinGecko data.The Dow Jones Industrial Average rose 417 points, or 1%, while the S&P 500 and Nasdaq Composite gained 1.2% and 1.8%, respectively, with technology stocks leading the charge.Rate Cut Probabilities in SeptemberThe CME FedWatch tool now indicates a 67.5% probability of a 25 basis point rate cut and a 32.5% chance of a 50 basis point cut at the Federal Open Market Committee (FOMC) meeting next month.Bitfinex Head of Derivatives Jag Kooner commented on the significance of Powell's speech: "Today's speech will likely set the tone for September, with investors paying close attention to Powell's interpretation of recent data and any hints about the scale and timing of future cuts."Kooner added that broader economic indicators, such as GDP and jobless claims, suggest the economy is in a better position than during the 2009 recession, reinforcing the possibility of a rate cut.