In this articleETH.CM=BMNRSBET your favorite stocksCREATE FREE ACCOUNTOmar Marques | Lightrocket | Getty ImagesThe 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 12% at $4,738.91, 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 level this Tuesday.Bitcoin rose 3% to $116,191.09.Stock Chart IconStock chart iconEther (ETH) bounces after Powell's Jackson Hole speechThe moves came during Powell's annual address from Jackson Hole, Wyoming.
"With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance," said Powell."Traders seem to have been caught completely off-sides by Powell's dovish s today," said Jordi Alexander, CEO at crypto trading firm Selini Capital.
"The market positioning in recent sessions has seen risk-off moves in assets crypto and , and today's setting up of a September rate cut is causing a panicked repositioning, which could continue through the illiquid weekend as shorts get squeezed.""Momentum is back on the with the administration and the Fed seemingly aligned on easing," he added.Around the time of the speech, ETH saw $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.s of companies focused on accumulating ether, which were some of the hardest hit this week when investors rotated out of names, bounced with the coin Friday.
Bitmine Immersion and SharpLink Gaming jumped 14% and 12%, respectively.s 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 s for resale.
It was last down 30% ing 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 xy Strategy added 5%.Ether exchange-traded funds saw $287.6 million in inflows Thursday, which snapped a four-day streak of outflows, according to crypto re 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.Bitcoin 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.Don't miss these cryptocurrency insights from CNBC : Crypto treasury firms whose s once soared have tumbled.
Here are the big winners and losersCrypto may be coming to 401(k) plans, but it'll be a while before it's easily accessibleExpect the crypto rally to cool in August as new tariffs ratchet up macroeconomic concerns