- Powell’s Jackson Hole remarks opened the door to a potential rate cut, sparking a sudden market rebound ahead of the September Fed meeting.
- Bitcoin and Ethereum led the crypto recovery, posting sharp gains within the hour as risk sentiment improved following Powell’s cautious comments.
- Shiba Inu surged nearly 5%, triggering $53,390 in liquidations, with short positions bearing the brunt of the imbalance.
The markets staged a rapid turnaround in early Friday trading after investors absorbed Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole gathering in Wyoming. Powell indicated that the central bank may consider a policy adjustment at its next meeting on September 16 and 17. He noted that the baseline outlook and shifting risks could warrant an interest rate cut, a statement that fueled immediate momentum across financial markets.
Major cryptocurrencies benefited from the shift in sentiment. Bitcoin gained 3% within the hour, while Ethereum advanced 7%. These moves broke a weeklong decline that had pressured the sector. Shiba Inu also recorded a nearly 5% rise in the same window, trading at $0.00001269, according to CoinMarketCap data.
Shiba Inu price action triggers liquidations
The Shiba Inu token climbed from $0.00001202 to $0.00001287 in the early session. The move generated a liquidation imbalance as traders positioned against the sudden rally. According to CoinGlass data, $53,390 worth of positions in Shiba Inu were liquidated within the last hour. Short positions accounted for $51,300 of that total, while $2,060 in long positions were also affected.
The wider cryptocurrency market saw a total of $206 million in liquidations in the same period. Bearish traders were forced out as tokens rallied, creating a sharp imbalance. For Shiba Inu, the disparity reached 2,491%, underscoring the pace of forced liquidations. The green hourly candlestick on trading charts reflected the sudden surge in buying activity.
Broader implications for investor sentiment
The market reversal highlights how closely investors are watching signals from central bank policy. Powell’s willingness to keep the door open for a rate cut has altered expectations for September. The reaction across risk assets, particularly cryptocurrencies, demonstrated the sensitivity to monetary policy outlooks and the potential for sharp price movements when investor sentiment shifts.
