Advertise
- Rizwan AnsariRizwan Ansari
- Reviewed by:
Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Aug 23, 2025 05:15 UTC
-
Why the Crypto Market is Rising Today
Fed Chair Powell’s hint at September rate cuts fueled Bitcoin’s rapid surge above $117,000.
Spot Bitcoin ETF outflows slowed sharply, signaling institutional confidence and boosting overall market optimism.
$752.96 million liquidations, mostly shorts, triggered forced buying, adding fuel to crypto’s strong rally.
Altcoins like XRP, Solana, Cardano, and Dogecoin rode Bitcoin’s momentum with impressive gains.
The cryptocurrency market is showing signs of life again, with a nearly 4% jump, as its market cap hit almost $4 trillion in the past 24 hours. Meanwhile, with Bitcoin up almost 4% from yesterday, crossing the $116,800 mark, a remarkable 93% increase from one year ago.
This rally has surprised the entire crypto market while traders are wondering the reason behind this massive jump.
Let’s break down what’s driving this rally.
Powell Hints at Rate Cuts In Sept
Federal Reserve Chair Jerome Powell’s recent speech from Jackson Hole strongly hinted at upcoming interest rate cuts, encouraging investors to move into risk-on assets like cryptocurrencies. Meanwhile, the CME FedWatch tool now shows a 75% chance of a cut
Powell’s softer stance pushed investors toward riskier assets like crypto. Bitcoin quickly bounced from $111,600 to above $117,000, showing how strongly markets react to Fed signals.
Bitcoin Spot ETF Outflows Drop Sharply
Another big reason was the sharp drop in Spot Bitcoin ETF outflows. After billions left earlier in the week, starting with $523.3 million on August 19, $315.9 million on August 20, and $194.4 million the other day, the outflow sharply dropped to just $23.2 million on August 22.
This shows institutions are holding their positions instead of cashing out, giving markets a fresh boost of confidence.
Ethereum Saw Big Gains
Ethereum also saw a big push, climbing to near a new high $4,735. A big reason behind this move is strong support from institutions. SharpLink announced a $1.5B buyback, and Japan’s SBI bank invested in Circle to grow USDC.
At the same time, gas fees on Ethereum are now at record lows, making it cheaper for people to use DeFi.
- Also Read :
- Crypto News Today LIVE : Bitcoin, Ethereum , XRP Price, Crypto Fear and Greed Index, Altcoin News
- ,
$744.77 Liquidations Add to the Rally
According to CoinGlass data, the past 24 hours saw 176,721 traders liquidated, with total liquidations reaching $752.96 million. Short sellers were hit hardest, with nearly $463 million in short positions wiped out.
Ethereum accounted for more than half the overall liquidations ($385.2 million), while Bitcoin recorded $111.76 million in short liquidations. This forced buying helped push crypto prices higher, adding to today’s rally.
Altcoins Ride the Momentum
The market rally today isn’t limited to Bitcoin and Ethereum alone, major altcoins like XRP, Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) have also posted substantial gains.
On top of this, the Altcoin season index has seen a jump and is currently standing at 57, indicating the altcoin season is near.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Markets surged nearly 4% after Fed hints at September rate cuts boosted investor confidence.
Powell’s dovish tone on rate cuts encouraged crypto investment. Bitcoin jumped from ~$111,600 to over $117,000 shortly after his comments.
Yes, major altcoins like XRP, SOL, ADA, and DOGE posted gains. The Altcoin Season Index jumped to 57, indicating a nearing altcoin season.
Yes 
No 
