Bitcoin surged to $116,000 after recovering from a six-week low, driven by dovish remarks from Fed Chair Jerome Powell at the Jackson Hole economic symposium. Powell indicated a potential interest-rate cut next month, prompting a swift increase in crypto and other risk assets. Bitcoin saw over a 3% increase from its recent low of $111,658, benefiting from a favorable market response to Powell's suggestion of adjusting monetary policy due to current inflation and labor market conditions. Hugo Crypto Trades and analyst Scott Melker noted bullish divergence signals in the BTC price and RSI data, suggesting strong support at $112K. The trading community now views Powell's comments as a preparation phase for a possible 25 basis point cut by the Federal Reserve, which had previously maintained a hawkish stance amid inflation uncertainty. This shift in tone has led to increased optimism in the crypto market, underlining the market's sensitivity to economic signals.

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