Bitcoin Rebounds on Powell Rate Cut Signal, $375M in Crypto Positions Liquidated as ETH Jumps 10%

Bitcoin rebounded sharply from a key technical level on Friday after Federal Reserve Chair Jerome Powell signaled that interest rate cuts may be on the horizon. The move triggered widespread liquidations across the crypto derivatives market, totaling more than $375 million.

The leading cryptocurrency rose 2.6% to $114,800 after briefly testing support at $111,800 — a former all-time high from May — as Powell’s comments during the Jackson Hole Economic Symposium helped shift market sentiment.

Powell said that “downside risks to employment are rising” and warned that any deterioration in the labor market could happen “quickly in the form of sharply higher layoffs and rising unemployment,” sparking hopes that the Fed may begin easing monetary policy as soon as September.

The rally sparked a cascade of liquidations, particularly among short positions. According to CoinGlass, Ether (ETH) was hit hardest, with over $150 million in liquidations in the past four hours alone. ETH surged 10%, jumping from $4,200 to $4,650 — outpacing both bitcoin and the broader altcoin market.

Bitcoin’s bounce off support marks a potential bullish reversal following a week-long slide from highs near $124,500. Although BTC briefly reached $115,700 intraday, it pulled back to $114,800 at press time, reflecting continued volatility.

Despite the liquidation-driven shakeout, open interest in crypto futures has climbed to a four-day high, signaling renewed risk appetite and leveraged positioning, according to Coinalyze.

While most altcoins trailed ETH’s rally, notable exceptions included Lido (LDO) and Ethena (ENA), which extended their gains following recent U.S. SEC guidance clarifying the regulatory treatment of staking.