In a dynamic session that reversed recent trends, Bitcoin and Ether surged to their highest levels since late August, rekindling enthusiasm in major cryptocurrencies at the close of Friday’s U.S. trading. Until now, digital asset flows had favored altcoins such as Solana and Dogecoin, but the twin giants reclaimed market attention with decisive upside momentum.
Bitcoin traded up 2% over two hours on Friday, reaching $116,600, while Ether advanced an impressive 5% to $4,650. Both tokens are trading at three-week highs after a period where major cryptos ceded the spotlight to alternative assets. This upward shift comes against a cautious macro backdrop, where investors had previously rotated into altcoins, seeking higher yields and differentiation from Bitcoin and Ether’s subdued price action.
A pivotal influence on this price action is the U.S. Federal Reserve’s recent policy pivot. At his August Jackson Hole speech, Fed Chair Jerome Powell signaled increased sensitivity to labor market weaknesses over persistent inflation. Markets responded swiftly: expectations for a September rate cut have firmed, with traders divided only on whether the trim will be 25 or 50 basis points. As the Fed’s September meeting looms, the crypto market is bracing for its first rate cut in a year—a move likely to recalibrate risk appetite and fuel further digital asset flows.
The impact was immediate: Bitcoin leapt from near $112,000 to above $117,000 in the hours after Powell’s signals, with Ether vaulting nearly 16%—almost breaching the $5,000 threshold for the first time in history. This rally, however, was quickly met with volatility; both assets briefly retraced ground as bulls and bears vied for control.
From a technical standpoint, Bitcoin is holding higher lows, sensitive to macroeconomic cues such as headline CPI climbing 0.4% month-on-month—above analyst expectations—and mounting labor market stress. Investors will be watching whether BTC can close the CME futures gap at $117,300, while technical support is in play at $110,756 and $100,887. For Ether, price action is precarious: a doji candle spotted at record highs suggests market indecision. Bearish divergence in the relative strength index further hints at a possible loss of momentum and a period of consolidation ahead.coindesk+1
Despite short-term uncertainties, institutional demand for crypto remains robust. Ether, in particular, stands as a beneficiary of renewed institutional accumulation, and analysts tout Ethereum’s growing reputation as Wall Street’s preferred blockchain. Meanwhile, ETF inflows for both Bitcoin and Ether have strengthened, reinforcing the case for continued market resilience.
With altcoins no longer dominating inflows and the Fed’s rate policy at an inflection point, the coming days represent a critical juncture for major cryptocurrencies. Traders should expect elevated volatility as macro and digital asset narratives converge around the outcome of the next Fed meeting.
