Following Federal Reserve Chairman Jerome Powell's dovish remarks at Jackson Hole, the cryptocurrency market launched a collective rally. On the evening of August 22nd, Ethereum prices soared, leading the broader cryptocurrency market higher.

According to Coinglass data, more than 160,000 traders were liquidated in the cryptocurrency market over the past 24 hours, with total liquidations reaching $694 million.

**Ethereum Price Soars to New All-Time High**

In the early hours of August 23rd, Ethereum surged strongly to $4,888.48, breaking through the previous all-time high of $4,878 set in early November 2021, establishing a new record high.

Other cryptocurrencies also rallied, with Bitcoin, XRP, and BNB all gaining over 3%.

Coinglass data shows that over the past 24 hours, more than 160,000 traders were liquidated in the cryptocurrency market, with total liquidations amounting to $694 million. Of this, long positions accounted for $230 million in liquidations, while short positions faced $470 million in liquidations.

**Powell: Fed Open to Rate Cuts**

On the news front, Federal Reserve Chairman Jerome Powell spoke on August 22nd at the annual Jackson Hole Global Central Bank Economic Policy Symposium in Wyoming, stating that the Fed may need to adjust its policy stance. This statement was interpreted by markets as a signal for potential rate cuts.

In his speech, Powell noted that the U.S. economy has demonstrated resilience this year amid comprehensive economic policy changes. Regarding the Fed's dual mandate objectives, the labor market remains close to maximum employment, and while inflation rates have risen slightly, they have declined significantly from post-pandemic highs. Meanwhile, the balance of risks appears to be shifting.

Powell indicated that upside risks to inflation have diminished while downside risks to employment are rising. The Fed's policy rate is 100 basis points lower than a year ago, unemployment remains low, and current conditions allow the Fed to proceed cautiously when considering policy stance adjustments. Given the evolving baseline outlook and changing risk balance, the Fed may need to adjust its policy stance.

Powell stated that if labor market tightness or other factors pose risks to price stability, the Fed may need to take preemptive action. Federal Reserve monetary policy must be forward-looking and consider the lagged effects of its economic impact.

Additionally, according to the Financial Times, anonymous sources revealed that following the U.S. passage of regulations related to dollar-pegged crypto assets earlier this year, EU officials are seeking to accelerate the launch of euro-pegged stablecoins. The sources indicated that the EU might launch a digital euro on Ethereum or Solana blockchains.

An analyst previously stated that recent regulatory developments in the U.S. have been particularly favorable to the Ethereum ecosystem, making cryptocurrencies more attractive.

Bitwise CEO Hunter Horsley noted that banks will become important catalysts driving continued development in the Bitcoin and cryptocurrency sectors.