Tether created $1 billion in new USDT tokens on Ethereum after the Federal Reserve’s interest rate reduction, potentially boosting crypto market liquidity and Ethereum-based project activity.
Ethereum surged 15% to a new record high of $4,885, breaking its 2021 peak after Fed Chair Powell signaled potential rate cuts at Jackson Hole. The rally triggered $120 million in short liquidations and boosted cryptocurrency-related stocks as investors embraced risk-on sentiment.
Bitcoin reached a peak of $64,853, driven by Federal Reserve Chair Jerome Powell’s hints at potential rate cuts, leading to a broader crypto market rally.
The Bank of Japan increased interest rates to 0.25%, marking its second hike since 2007, while markets await the Federal Reserve’s decision expected to maintain current rates.
