Market Digest: Bitcoin Dips to $112K as Fed Keeps Rate-Cut Hopes Alive

Key Takeaways

Jerome Powell’s dovish message at Jackson Hole fueled a global rally as investors grew confident the Fed may deliver rate cuts in coming months.
Washington’s new tariffs on Europe and continued fighting in Ukraine kept geopolitical tensions high, adding pressure to global economic outlooks.
The ECB, BOJ, and BOE struck cautious tones, highlighting diverging policy paths as Europe holds steady, Japan weighs hikes, and Britain faces weak growth.
Bitcoin eased to about $112,600 after a strong run, while Gold gained near $3,370 as traders balanced Fed optimism with safe-haven demand.

On August 25, 2025, markets rallied after Jerome Powell signaled a softer stance at the Jackson Hole Symposium, lifting hopes for Federal Reserve rate cuts.

In his speech, the Fed Chair pointed to growing risks in the labor market while acknowledging that inflation pressures remain, giving investors reason to expect easing in the months ahead.

On the diplomatic front, U.S.–EU trade tensions eased after President Donald Trump backed down from threats of triple-digit tariffs on European pharmaceuticals and semiconductors. Under a new deal announced on Thursday, those products will instead face a 15% duty, in line with most other sectors

In Ukraine, intense battles in the east left uncertainty over any path to peace, raising the risk of prolonged pressure on Europe’s economy.

In the Middle East, political risks remained an important factor for energy markets, though crude prices were driven more by global demand signals and central-bank policy than by supply disruptions.

On the economic front, the European Central Bank is expected to keep rates unchanged in September, though policymakers have signaled that fresh cuts could be back on the table later this year if growth weakens. Additionally, the euro zone economy has held up better than expected, with inflation staying close to target.

Meanwhile, in Japan, BOJ Governor Kazuo Ueda said wage growth is now extending beyond big firms, adding that persistent labor shortages could justify another rate hike.

In Britain, Bank of England Governor Andrew Bailey told the Jackson Hole gathering that the country faces an “acute challenge” from weak growth and lower labor participation, with structural pressures weighing on productivity.

In Crypto, markets cooled off after an earlier surge. Bitcoin slipped about 2.4% to roughly $112,600 as traders took profits following a sharp bounce. Ethereum and Solana also traded lower, though performance remained solid overall.

Despite the pullback, trader sentiment stayed firm, as Powell’s dovish tone at Jackson Hole revived expectations for lower rates, sparking a wave of buying before investors locked in some gains.

Price movements

Global Indices

S&P 500 Index (SPX): 6,416.92 (+1.52%)
Dow Jones Industrial Average (DJI): 45,631.74 (+1.89%)
Nasdaq Composite Index (IXIC): 21,496.53 (+1.88%)
Nikkei 225 Futures (NK2251): 42,950.0 (+0.89%)
Euronext 100 Index (N100): 1,631.55 (+0.57%)
FTSE 100 Index (FTSE): 9,338.5 (+0.22%)

Cryptocurrencies

Bitcoin (BTCUSD): 112,577 (-2.44%)
Ethereum (ETHUSDT): 4,769.02 (-0.20%)
Binance Coin (BNBUSDT): 868.90 (-1.31%)
Solana (SOLUSDT): 202.94 (-0.59%)
Bitcoin Dominance (BTC.D): 57.80% (-0.76%)

Major Stocks

Nvidia (NVDA): 177.99 (+1.72%)
Tesla (TSLA): 340.01 (+6.22%)
Microsoft (MSFT): 507.23 (+0.59%)
Meta Platforms (META): 754.79 (+2.12%)
Apple (AAPL): 227.76 (+1.27%)
Amazon (AMZN): 228.84 (+3.10%)

Commodities

Silver (XAGUSD): 38.89 (+1.97%)
Gold (XAUUSD): 3,371.24 (+0.98%)
WTI Crude (USOIL): 63.76 (+0.46%)
Brent Crude (BRENT): 68.16 (-3.68%)

Forex

U.S. Dollar Index (DXY): 97.275 (-0.95%)
EUR/USD: 1.1720 (+0.03%)
GBP/USD: 1.3513 (-0.05%)
USD/JPY: 146.83 (-0.04%)

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