Bitfinex Alpha: Risk appetite has returned to BTC

BTC surged to $65,000 as risk assets generally rallied as Federal Reserve Chairperson Jerome Powell made comments in Jackson Hole that hinted at a possible rate cut, a statement that sent the dollar lower and boosted stocks, with the Standard & Poor's 500 index nearing an all-time high, according to a Bitfinex Alpha research report. Bitcoin, which had previously lagged the stock market, rallied sharply by 6.06% in a single day, its second-largest one-day gain since May. The rally comes against the backdrop of a growing positive correlation between Bitcoin and the U.S. stock market, which has been relatively weak relative to stocks since hitting lows in early August. Friday's price spike also saw a sharp rise in correlation, suggesting that risk appetite has returned to the market.