- Bitcoin bounced 2.6% off key $111,800 support after Powell hinted at rate cuts.
- Over $375M in liquidations hit crypto derivatives, with ETH shorts taking the biggest hit.
- Market volatility remains high, with leverage piling back in and altcoins lagging behind.
Bitcoin pulled off a sharp rebound on Friday, bouncing cleanly off the $111,800 support zone after Jerome Powell dropped hints of possible interest rate cuts during his Jackson Hole address. The move was quick—BTC shot up 2.6% in minutes, reclaiming $114,800 before cooling just slightly.
The rally didn’t come without wreckage. More than $375 million worth of crypto derivative positions were flushed out, according to CoinGlass, with the bulk of the liquidations hitting short traders who got caught on the wrong side of the move. Ether holders felt the sting hardest, with $150 million wiped out as ETH ripped from $4,200 to $4,650 in just a few hours, chalking up a tidy 10% gain.
Support and Sentiment Shift
Friday’s bounce was especially critical because $111,800 wasn’t just any line—it was May’s record high, making it a key level for traders watching historical support. After tumbling more than 10% from its $124,500 peak last week, this reversal hints that bulls aren’t ready to give up control just yet.
Powell, who many expected to lean hawkish, instead warned that “downside risks to employment are rising” and that layoffs could accelerate fast if conditions worsen. Translation? The Fed is seriously weighing cuts as early as September. For risk assets like Bitcoin and Ether, that’s music to the ears.
Volatility Persists
Even with the sharp climb, the market stayed jittery. BTC briefly tapped $115,700 before pulling back to $114,800 as traders tried to digest the speech. Coinalyze data showed open interest hitting a four-day high, suggesting that while liquidations cleared out weak hands, plenty of leveraged positions are piling back in. That sets the stage for more fireworks either way.
Meanwhile, altcoins struggled to keep pace with ETH’s surge. Most majors lagged behind, though Lido (LDO) and Ethena (ENA) continued climbing on the back of the SEC’s recent clarity around staking rules. For now, the spotlight remains squarely on BTC and ETH—but the broader market looks primed for more volatility as September’s Fed meeting looms.
