Why Ethereum Jumped 13% Today
Ethereum (CRYPTO: ETH) skyrocketed on Friday. As soon as Federal Reserve Chairman Jerome Powell suggested that interest rates might come down in 2025, Ethereum's price took off on a rocket ride. The coin was up 13% at 2:24 p.m. ET, reaching prices not seen since November 2021.
Lower interest rates on federal debt papers often inspire strong returns for investors in high-risk assets. If it's easy to find cheap capital, it's easier to risk some money on more speculative trades. Ethereum has seen plenty of these effects play out in 2025, mostly the reverse version with crypto prices going down amid a slower rate-cut policy.
But this was the bullish version of the rate-cut effect. Powell didn't actually lower federal interest rates in Friday's speech at Jackson Hole, Wyoming, but he suggested that September's Federal Reserve meeting "may warrant" the first interest rate reduction since last December.
Source Fool.com
