Bitcoin is currently perched above the $113,600 mark, a position it reclaimed after a slight uptick on Thursday, August 21, 2025. As traders keenly await Federal Reserve Chair Jerome Powell’s address at the Jackson Hole Symposium, the crypto market is on tenterhooks, anticipating clues about potential rate cuts in September. Solana (SOL) and Dogecoin (DOGE) are leading the day’s gains among major cryptocurrencies, both clocking a 4% increase.
Market’s Mixed Reactions
Despite Bitcoin’s relative stability, other major tokens such as XRP, BNB, Ether (ETH), and Tron (TRX) are experiencing more subdued movements, each registering gains between 1% and 3%. Analysts attribute this cautious optimism to weakening jobs data, which has buoyed expectations for monetary easing. However, tariff-driven inflation remains a persistent bogeyman, casting shadows over risk assets and leaving them vulnerable to potential disappointment. For more insights into market anxieties, see Crypto Bleeds Ahead of Powell’s Jackson Hole Speech — Eight Reasons Why Traders Are Nervous.
“The Fed faces a difficult balancing act—cut too soon and risk reigniting inflation, wait too long and growth risks deepen,” explained Nick Ruck, director at LVRG Research, in a note to CoinDesk. His sentiments capture the precariousness of the current economic landscape, where sentiment has quickly soured. The fear and greed index has plummeted to 44, its lowest in nearly two months, after reaching a high of 75 just six days prior. This decline mirrors Bitcoin’s price movements, which saw a dip to $112,500 earlier this week before finding its footing near recent lows.
Bitcoin’s Fragile Fortunes
The crypto community is abuzz with speculation about Bitcoin’s immediate future. A break below the $108,000 threshold could pave the way for a descent to $100,000, warns Alex Kuptsikevich, chief market analyst at FxPro. “Bitcoin fell to $112,500 in the morning, receiving temporary support when it touched the area of recent lows at the start of the month,” he noted. “The day before, sales increased after a decline below the 50-day moving average—a bearish signal.” This aligns with recent developments where Bitcoin Drops Below $114K, Ether Loses $4.2K as Jackson Hole Speech Might Bring Hawkish Surprise.
Kuptsikevich’s analysis illustrates the cautious outlook among traders, who are watching closely for a potential pullback to stronger support levels. The crypto market, he suggests, has lost momentum quicker than Nasdaq 100 stocks, underscoring its sensitivity to investor sentiment. On-chain data from CryptoQuant corroborates this fragility, revealing that short-term Bitcoin holders are selling at a loss for the first time since January, a trend that previously heralded deeper corrections.
Adding to the complexity, Santiment has highlighted lower trading volumes compared to July, despite August’s new price highs. Meanwhile, a surge in retail activity often points to local tops, adding another layer of caution to the mix.
Currency Weakness or Genuine Rally?
Some experts argue that Bitcoin’s recent rally might be more illusion than substance. “Bitcoin’s recent records may be a consequence of the dollar’s depreciation rather than a reflection of real value growth,” suggested a report from Presto Research earlier this week. If this analysis holds true, Bitcoin’s current levels may fall short of the peaks seen in 2021 and the post-2024 election heights.
As Powell’s Jackson Hole comments loom large, traders are bracing for a turbulent ride. A dovish signal could spark relief rallies across the crypto landscape, but any hesitancy about rate cuts might hasten Bitcoin’s slide toward $100,000. The stakes are high, and the market’s next moves remain as enigmatic as ever.
Source
This article is based on: Bitcoin Hovers at $113K; Solana and Dogecoin Lead Gains Ahead of Powell’s Jackson Hole Speech
Further Reading
Deepen your understanding with these related articles:
- Crypto Traders Eye Jackson Hole as Ether, XRP, Solana Drop Sharply in Retreat
- Fading Fed Rate Cut Hopes: Is a Bitcoin Price Drop Next?
- Volatility Vanishes Across Markets as Traders Brace for Powell’s Jackson Hole Speech
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
