Higher

Perhaps surprising markets which had expected a hawkish tone, Federal Reserve Chair Jerome Powell firmly put a September rate cut on the table on Friday.

Speaking at the Kansas City Fed’s Economic Symposium in Jackson Hole, Powell said the shifting balance of risks may warrant adjusting policy.

“Downside risks to employment are rising,” said Powell. “If those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.”

Bitcoin has gained about 2% since the remarks hit the wires, rising to $114,200. U.S. stocks have added more than 1% and the 10-year Treasury yield is lower by six basis points to 4.27%. The dollar index has dipped about 0.5% and gold is higher by 0.6%.

Rough week ahead of Powell

In anticipation that Powell would remain hawkish, risk markets — crypto among them — had been under sizable pressure in the days leading up to his address.

Touching a record high above $124,000 about one week ago alongside September rate cut expectations that had risen to nearly 100%, bitcoin BTC$114,886.93 has slumped nearly 10% to $112,000 since as those monetary easing hopes quickly dwindled to just 69% in the hours ahead of Powell’s speech. In the minutes following, those odds have re-risen to nearly 90%, per CME FedWatch.

Read more: Fed’s Hammack Says ‘No’ to Rate Cut; Bitcoin Slips to Session Low Below $113K

The correction in the perhaps more speculative ether (ETH) was even deeper, with that crypto tumbling roughly 12% over the same time frame after coming within a few dollars of its all-time high. It’s bounced nearly 8% since the Powell speech.

In traditional markets, the Nasdaq dipped 3% over the past few days as it too priced in lessening chances of a rate cut.

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