Bitcoin Rises Above $48K as Dollar Drops After Powell’s Dovish Comments

No news is good news for the bitcoin market as the Fed chairman avoids specifying a “tapering” time frame at virtual Jackson Hole symposium.

AccessTimeIconAug 27, 2021 at 5:20 p.m. UTC
Updated May 11, 2023 at 5:28 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Bitcoin gained Friday, and the U.S. dollar dropped in foreign-exchange markets, after Federal Reserve Chairman Jerome Powell leaned dovish in a key speech at the U.S. central bank’s annual Jackson Hole, Wyo., conference. He provided no concrete date for starting to taper or scale back the Fed’s $120 billion-a-month bond-buying program.

Bitcoin, the top cryptocurrency by market value, jumped from $47,200 to $48,200 after earlier managing to remain above the key 200-day moving average support of around $46,000.

The U.S. Dollar Index, which tracks the greenback’s value against major fiat currencies, dropped from 93.18 to 92.67 to trade 0.35% lower on the day, per data provided by

Gold jumped 0.65% to $1,800 per ounce, and U.S. stock markets continued to trade positive; the 10-year U.S. Treasury yield fell by two basis points to 1.32%.

In the highly anticipated speech at the Federal Reserve Bank of Kansas City’s annual economic symposium, Powell said the economy no longer needs as much policy support but the central bank should refrain from making an “ill-timed policy move” in response to this year’s “transitory” rise in inflation.

Powell added the Fed could begin unwinding its asset purchase program before the year’s end, but stressed it would not necessarily lead to any hike in interest rates.

“The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff, for which we have articulated a different and substantially more stringent test,” Powell said in prepared remarks for the virtual summit.

Powell’s taper talk is not surprising because several Fed officials recently hinted at the central bank kick-starting the process this year. However, Powell’s comments on interest rates seem to have convinced markets that rates are likely to remain low for a prolonged time, as evidenced from the uptick in the zero-yielding asset like gold and the decline in bond yields.

While bitcoin has bounced after Powell’s remarks, it still remains trapped in a descending channel on the hourly chart. A breakout could yield a more sustained move above $50,000.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.