- Bitcoin climbed to $116,600 and Ethereum to $4,650, their highest since mid-August.
- Powell’s dovish pivot has markets fully pricing in a Fed rate cut next week.
- BTC and ETH are regaining attention after weeks of altcoin-led rallies.
After weeks of lagging behind hot altcoins like Solana and Dogecoin, Bitcoin and Ethereum surged Friday afternoon to reach their highest levels in three weeks. Bitcoin jumped 2% in just a couple of hours, climbing to $116,600, while Ethereum spiked 5% to $4,650. Both moves signal renewed interest in the two largest cryptocurrencies as traders prepare for next week’s Federal Reserve meeting.
Fed Pivot Fuels Optimism
The latest rally ties back to Fed Chair Jerome Powell’s surprise dovish turn at Jackson Hole in late August. Shifting focus from inflation to the weakening labor market, Powell opened the door to rate cuts sooner than expected. Traders immediately priced in a September cut, with CME FedWatch showing near-certainty of at least 25 basis points. That sentiment reignited risk assets, helping BTC and ETH recover after a sharp pullback last month.
The Altcoin Distraction
Until Friday’s rebound, the spotlight had been firmly on altcoins. Solana gained 17% over the week, while Dogecoin surged 25% amid ETF speculation and treasury accumulation strategies. Treasury companies and institutional products focusing on these assets drove much of the momentum, leaving BTC and ETH overlooked. Friday’s rally suggests big players are now rotating back into majors ahead of the Fed’s policy shift.
What’s Next for BTC and ETH
All eyes are now on the Fed’s September 17 decision. Markets broadly expect a 25 bps cut, trimming the benchmark rate to 4.00%–4.25%. With liquidity conditions set to ease, traders believe Bitcoin and Ethereum could extend their gains if inflows return to ETFs and institutional products. Still, after August’s whipsaw price action, caution lingers. A hawkish surprise—or a smaller-than-expected rally—could test support levels again.
