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The price of ether rebounded to near-record levels on Friday after Federal Reserve Chair Jerome Powell hinted at upcoming rate cuts and investors returned to risk-on mode.
The second largest cryptocurrency was last higher by nearly 10% at $4,652.51, according to Coin Metrics. Last week, ether nearly touched its 2021 all-time high of $4,866.01, before falling as low as the $4,000 this Tuesday.
Bitcoin rose 4% to $116,659.12.
Ether (ETH) bounces after Powell’s Jackson Hole speech
The moves came during Powell’s annual address from Jackson Hole, Wyo. He said, “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
Around the time of the speech, ETH saw about $120 million in short liquidations in a one-hour period, according to CoinGlass. When traders use leverage to short ether and the coin’s price rises, they buy ETH back from the market to close their positions, In turn, this pushes the coin’s price even higher and results in more positions being liquidated.
Shares of companies focused on accumulating ether, which were some of the hardest hit this week when investors rotated out of tech names, bounced with the coin Friday. Bitmine Immersion and SharpLink Gaming jumped 14% and 12%, respectively.
Shares of Peter Thiel-backed ETHzilla tumbled more than 38% at one point Friday after the ether treasury company offered up to 74.8 million of its shares for resale. It was last down 30% following Powell’s Jackson Hole remarks.
Elsewhere, Solana-focused treasury firm DeFi Development surged 19% and crypto exchange Coinbase advanced 6%. Stablecoin issuer Circle gained 7%, and bitcoin proxy Strategy added 5%.
Etherย ETFs saw $287.6 million in inflows Thursday, which snapped a four-day streak of outflows, according to crypto research platform SoSoValue. Still, those funds collectively were on pace for their first week of net outflows ($578.9 million) since May 9 and biggest week of outflows on record.
Bitcoinย ETFs on Thursday logged their fifth session in a row of outflows, bringing their total for the week to $1.15 billion. They are now on pace for their biggest week of net outflows since Feb. 28.
