The Federal Reserve's dovish shift drives Crypto Assets to new highs — Insights for exchange builders

On the evening of August 22, 2025, U.S. Federal Reserve Chair Jerome Powell delivered a dovish speech at the Jackson Hole Global Central Bank Annual Meeting, triggering a strong reaction in global markets.

Powell pointed out that the downside risks to U.S. employment are rising, and the risk balance may require a policy shift. The market generally interprets this as a clear signal for an imminent rate cut.

As a result, risk assets surged significantly, with the cryptocurrency market being the main beneficiary. In the early hours of August 23, Ethereum (ETH) skyrocketed to $4,888.48, surpassing its historical high of $4,878 set in November 2021. Meanwhile, Bitcoin (BTC), XRP, and BNB also rose by more than 3%.

This macro background and market response have far-reaching implications for institutions planning to enter the cryptocurrency exchange industry.

1. Liquidity tailwinds benefit risk assets The expectation of interest rate cuts means a return of liquidity. Funds may flow out of low-yield traditional assets and shift towards high-risk, high-return markets—cryptocurrencies will become a primary destination. For exchanges, this will translate into higher trading activity and deeper market participation, creating a favorable environment for the launch and expansion of new platforms.

2. Market sentiment turns optimistic —— Seize the golden opportunity ETH hitting new highs has not only attracted new capital but also reignited investor confidence. With media reports and discussions on social platforms, the market is expected to welcome a new wave of retail capital influx and institutional participation. For exchanges, this is the best opportunity to seize users and market share. Entering at the beginning of a bull market helps to establish brand exposure more quickly and accelerate user growth.

3. Strategic Entry Points in the Growing Competitive Landscape Although top exchanges dominate in scale, the rapidly expanding market is not completely monopolized. New entrants can still break through by focusing on regional areas, prioritizing compliance, or offering innovative product solutions. For projects with institutional backgrounds, the current market upcycle is an ideal time to quickly acquire customers by leveraging the influx of liquidity.

4. Trend of Global Regulatory Clarity With the official implementation of the US GENIUS Act and Hong Kong's advancement in stablecoin legislation, the regulatory framework in major jurisdictions is gradually becoming clearer. This shift means that a compliance-oriented business model will become the industry standard. For institutional investors and regulated exchanges, regulatory clarity will translate into a sustainable competitive advantage.

Conclusion: The best time to launch a cryptocurrency exchange Powell's dovish remarks not only highlight how macro policies directly affect the crypto market, but also provide strategic signals for builders of cryptocurrency exchanges:

Liquidity tailwinds will drive higher trading activity.

ETH reaches a new high, igniting confidence and capital inflow.

Entering a bull market provides a unique opportunity to seize market share.

Clear regulatory clarity benefits compliance and institutional-level platforms.

For institutions planning to enter the cryptocurrency exchange space, now is the best time to act.

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