- Powell’s Jackson Hole speech sparks swift rebound across global markets.
- Shiba Inu leads crypto rally, posting strong hourly price gains.
- Massive short liquidations highlight traders caught off guard Friday.
Markets experienced a swift turnaround in the early Friday session after Federal Reserve Chair Jerome Powell addressed investors at Jackson Hole, Wyoming. His statements indicated that a rate cut may be on the table at the next Fed meeting, which is to be held on September 16- 17. Powell also emphasized that the baseline view and the change in risk could necessitate a change in the policy stance.
The cryptocurrencies reacted instantly to the speech as they reversed a downward trend they had been undergoing over the past week and posted significant gains within an hour. Bitcoin increased by 3 percent and Ethereum by 7 percent, demonstrating a new upward trend in large tokens. Shiba Inu did not show a lesser gain, as it also rose almost 5 percent, reaching the price of $0.00001269, as per CoinMarketCap.
Also Read: $100,774,102 XRP Move Sparks Reaction – Here’s Where it’s Going
Shiba Inu Price Action and Liquidation Surge
Hiba Inu rallied as much as $0.00001202 to $0.00001287 in the first few hours, one of its steepest hourly jumps in weeks. The sudden price jump surprised many traders, especially those who had bet against the token.
Data provided by CoinGlass showed that the sudden change in sentiment caused a liquidation wave. The crypto market saw shorts worth $206 million liquidated in the last hour, which was a high change of position that brought to the fore much unraveling of positions.
Shiba Inu alone registered $53,390 in total liquidations as the bearish traders had to cut their losses. The total short position was responsible for $51,300 of the loss, and longs lost $2,060. This imbalance caused a liquidation of 2,491 percent of short positions to be eliminated.
As a result, the action triggered an intense trade in the Shiba Inu cryptocurrency and drove hourly candlesticks into the green zone. Traders who had gone short to anticipate further declines suffered sharp and significant losses.
Besides, the sharp spike demonstrated the extent to which digital assets are sensitive to macroeconomic cues at the Federal Reserve. As Powell left the door open as to whether the Fed will cut rates, risk assets were seen to have received an immediate boost as monetary conditions will be eased.
The market reaction to Powell’s speech at Jackson Hole changed the mood in the stock markets as well as in the cryptocurrency sphere and caused a sharp rise in the most popular cryptocurrencies. Shiba Inu was among the sharpest in terms of hourly gains, which triggered liquidations and significantly affected bearish traders. The events emphasized how the market was vulnerable to the central bank policies, and the mood ahead of the September meeting of the Fed is expected to be volatile.
Also Read: India Panel Urges Crypto Regulation Amid ₹31,500 Cr Fraud and Cybercrime Spike
