Bitcoin’s price has been a roller coaster lately, and today it’s dangling just below the $113,000 mark. Investors are on edge, eyes glued to the Federal Reserve’s Jackson Hole symposium where Chair Jerome Powell is slated to speak. The mood has been one of caution rather than exuberance, with the CoinDesk 20 Index slipping to 3,996—a 0.46% drop from this morning.
The Powell Effect
So, why all the anxiety? It’s all about interest rates, folks. Powell’s upcoming speech is the talk of the town, with investors hoping for a whisper of rate cuts. If Powell hints at a dovish stance, we might see a rally in risk assets, including cryptocurrencies. But if he stays tight-lipped or leans hawkish, the pullback could deepen. According to Pulkit Goyal of Orbit Markets, “BTC options are pricing in about a ±2% move around Powell’s speech,” which shows the market’s jitters but not outright panic. As explored in Volatility Vanishes Across Markets as Traders Brace for Powell’s Jackson Hole Speech, this anticipation is affecting markets beyond just crypto.
Bitcoin isn’t the only one feeling the tremors. Ether is hovering around $4,289, down from recent highs, as network activity cools. XRP and Solana have both seen over 6% drops this week. Everyone’s waiting for the next big move, and Powell might just be the catalyst.
Market Ripples
The broader market sentiment isn’t any rosier. Bitcoin funds saw over $1 billion pulled out in just a few days, according to SoSoValue data. Even Ether ETFs, which showed net inflows yesterday, have hemorrhaged half a billion dollars this week. It seems institutional players are opting for caution as they await Powell’s remarks. This trend aligns with recent observations in ETF Outflows Signal Risk Aversion Before FOMC, Powell Speech: Crypto Daybook Americas.
Options data suggests investors are hedging their bets. The stakes are high: a dovish Powell could breathe new life into the market, while a cautious tone might push Bitcoin toward its $108,000 support level. That’s why everyone’s on tenterhooks.
Long-Term Hopes
Despite today’s nervousness, there’s still bullish chatter for the long haul. Bitwise suggests that, given time, pension funds might drive Bitcoin as high as $200,000. But that’s a vision for another day. For now, Bitcoin, like other risk assets, is hanging on Powell’s every word.
Meanwhile, Ethereum-based projects are making their own news. Polygon Labs’ Marc Boiron is holding an AMA today to discuss future plans, and the Mantle Network is gearing up for a mainnet upgrade on August 27. These developments could provide a welcome distraction from the macroeconomic tension.
The Road Ahead
So, what’s next? Powell’s speech could either calm the waters or stir the pot. The crypto market is at a crossroads, and how it reacts could set the tone for the weeks to come. With September historically being a bearish month for Bitcoin, bulls will need to keep their wits about them.
In the meantime, keep an eye on the little details. From governance votes in the Aavegotchi DAO to token unlocks and new listings, the crypto world is teeming with activity. It’s a reminder that, despite the current tension, the underlying innovation never sleeps.
As investors, traders, and analysts alike hold their collective breath for Powell’s speech, one thing is clear: the next chapter in Bitcoin’s story is about to unfold. Stay tuned.
Source
This article is based on: All Eyes on Powell as Bitcoin Holds Below $113K: Crypto Daybook Americas
Further Reading
Deepen your understanding with these related articles:
- Jackson Hole Weighs on Digital Assets: Crypto Daybook Americas
- Crypto Bleeds Ahead of Powell’s Jackson Hole Speech — Eight Reasons Why Traders Are Nervous
- Bitcoin Drops Below $114K, Ether Loses $4.2K as Jackson Hole Speech Might Bring Hawkish Surprise
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.
