Crypto Markets Stall as Bitcoin Holds $113K Ahead of Powell’s Jackson Hole Remarks
Cryptocurrency markets paused on Thursday as investors braced for Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech — a key moment that could sway risk sentiment across global assets. Bitcoin (BTC) hovered above $113,600 following a modest recovery, as traders await clues on whether the Fed will lean toward rate cuts in its September meeting.
Solana (SOL) and Dogecoin (DOGE) outpaced the broader market, each gaining 4%. Other majors, including XRP, Ethereum (ETH), Binance Coin (BNB), and Tron (TRX), posted more modest gains between 1% and 3%.
While recent softness in U.S. jobs data has increased bets on monetary easing, persistent inflation driven by trade tariffs has complicated the Fed’s decision-making.
“The Fed faces a difficult balancing act — cut too soon and risk reigniting inflation, wait too long and growth risks deepen,” said Nick Ruck, director at LVRG Research, in comments to CoinDesk.
Sentiment has deteriorated rapidly. The Crypto Fear & Greed Index dropped to 44, its lowest in nearly two months, after reading 75 less than a week ago. The sharp swing reflects Bitcoin’s own price action — the asset briefly dropped to $112,500 earlier in the week before stabilizing.
Technical analysts are closely watching the $108,000 level as key support. A clean break below that zone, some warn, could set the stage for a slide toward $100,000.
“Bitcoin found temporary support near the early-August lows after dipping to $112,500,” said FxPro analyst Alex Kuptsikevich. “But the recent drop below the 50-day moving average triggered heavier selling. If $108,000 doesn’t hold, a move to $100,000 is likely.”
Kuptsikevich added that the crypto market lost steam ahead of tech equities, reinforcing its status as a leading barometer for broader risk sentiment.
On-chain signals also point to growing weakness. CryptoQuant reported that short-term holders are now realizing losses — the first time since January — which has historically preceded deeper corrections. Meanwhile, Santiment flagged falling trading volumes alongside increased retail activity, often a sign of market exhaustion.
Some researchers argue that Bitcoin’s recent highs may be driven more by a weaker U.S. dollar than by renewed investor demand.
“Bitcoin’s rally appears more tied to currency weakness than real capital inflows,” said Presto Research in a note. “Adjusted for dollar depreciation, BTC remains below its 2021 peak and post-election 2024 levels.”
With Powell’s remarks set to influence market direction, traders are preparing for increased volatility. A dovish tone could provide relief, but any ambiguity or hawkish tilt may accelerate Bitcoin’s decline toward the psychologically significant $100,000 mark.
