Key Takeaways:
- Jerome Powell’s final Jackson Hole speech could trigger volatility in both traditional and crypto markets.
- Analyst Ted Pillows said that BTC rallied by 162% and 101% following Powell’s 2023 and 2024 speeches at Jackson Hole, hinting that ETH may follow a similar path.
- ETH whale accumulation and rising large-wallet holdings suggest smart money confidence despite recent price declines.
Traders and investors are currently anticipating interest rate expectations from Fed Chair Jerome Powell’s final speech at Jackson Hole, with his term as chair ending in May 2026. The remarks made by the Fed Chair are expected to shape not only traditional financial markets but also risky assets within the crypto market.
The crypto market is currently down as the entire market capitalization (cap) has decreased from peaks of $3.90 trillion on 21st August to $3.81 trillion on 22nd August, declining by 2.3%. Additionally, three major cryptos by market cap have posted declining trends with Bitcoin (BTC), Ethereum (ETH) and XRP decreasing by 1%, 0.7% and 3.5% respectively at the time of reporting.
However, Ted Pillows is a major voice in the crypto industry who is an investor, Key Opinion Leader (KOL) and entrepreneur with over 200K followers on X recently shared insights on how ETH would react following Powell’s speech at Jackson Hole.
According to the chart included in Pillow’s tweet, BTC has reacted in similar patterns over the years. For instance, during the years 2023 and 2024, when Powell spoke at Jackson Hole, BTC experienced significant volatility, followed by a massive surge in BTC.
Pillow has charted the increase in BTC; it surged by 162% and 101% in 2023 and 2024, respectively. Based on Pillow’s analysis, we are currently in the same setup again. The Jackson Hole speech is scheduled to go live on August 22nd, and once the short-term volatility settles, we could expect BTC to surge this time as well, according to Pillows.
Pillows believes that,
Powell’s Speech at the Jackson Hole summit could cause volatility. This happened in 2023, 2024 and will probably happen again.
Pillows believes that the rally in BTC is expected to lead to a surge in ETH, too. The belief is that Powell’s speech functions as a trigger: if the Fed Chair hints at potential rate cuts, it could lead to crypto prices rising dramatically. On the other hand, if his message is more hawkish or aggressive about inflation, there may be a negative risk.
Still, the chart strongly implies a historical trend of rallies following this event, leading the expert to anticipate that ETH will soon follow BTC in a significant upward rise, as it did in 2023 and 2024. Traders and investors are keeping a careful eye on this, as it could indicate an opportunity in the current cycle. According to Pillows-
But after that, a big $ETH rally is coming, just like the last time.
Pillows later on tweeted, showing the number of wallets holding over 10,000 ETH has grown by more than 200 since early July. That shows strong confidence from smart money, a bullish sign that they believe ETH’s price could rise soon.
As markets anticipate future interest rate expectations, the speech at Jackson Hole could possibly give investors and traders a hint on whether the Fed will adopt a Hawkish or Dovish stance. Currently, the expectations for an interest rate cut between 4.25%-4.50% remain at 69.6% according to the CME Fed watch tool. It has fallen from 85.4% to 69.6% within one week.
ETH has shown significant momentum over the past few months; however, in recent days, it has been trending downwards. ETH has declined by 8% over the past 7 days.
With ETH already demonstrating long-term accumulation by major holders and market participants looking for Fed policy signals, the stage may be prepared for another breakout as long as Powell’s tone does not decrease interest rate expectations further.
