Bitcoin surged by $1,100 in just 10 minutes after Federal Reserve Chair Jerome Powell shared dovish remarks during his Jackson Hole speech.

“The time has come for policy to adjust,” Fed chair Powell said on Aug. 23 at Jackon Hole ahead of a Federal Reserve policy meeting in September. Powell’s remarks affirmed the Fed’s confidence in driving inflation to 2%, meaning rate cuts may be inbound.

The price of Bitcoin (BTC) briefly traded above $62,000, though it later retraced as the broader crypto market reclaimed some of the initial gains. Public consensus attributed Bitcoin’s brief surge to Powell’s comments.

Still, incoming data will dictate how much the Fed implements looser monetary policies, according to Powell. As crypto.news reported, slashed interest rates would likely be bullish for Bitcoin’s price and, by extension, the broader cryptocurrency market. 

Fed rate cut could boost Bitcoin market

Typically, reduced funding rates lead to improved liquidity and a greater appetite for risk assets, a category that often includes Bitcoin and other digital assets. With the U.S. stock market and gold trading at all-time highs, there’s speculation that capital seeking new profits could flow into Bitcoin.

Following Bitcoin’s decline to $49,000 after black Monday earlier this month, the asset has been stuck in a range between $53,000 and $61,000 for weeks.

Spot Bitcoin exchange-traded funds recorded varied flows, but had attracted incoming capital for six consecutive days at press time.

Reduced supply thanks to April’s halving, which cut block rewards by 50%, EFT buying, and possible rate cuts may bolster Bitcoin’s bullish thesis. The asset changed hands for $61,500 after the so-called test pump from Powell’s Jackson Hole speech.