Crypto Traders on Edge as Bitcoin Holds $113K Ahead of Fed Chair Powell’s Jackson Hole Speech
Bitcoin remained rangebound above $113,000 on Thursday as crypto markets paused ahead of a key speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium — an event likely to shape expectations for U.S. monetary policy heading into September.
The largest cryptocurrency by market cap hovered near $113,600 after briefly dipping to $112,500 earlier in the week. Traders are watching closely for any hint of dovishness from Powell that could revive appetite for risk assets. Conversely, a hawkish stance could deepen market weakness.
Solana (SOL) and Dogecoin (DOGE) outperformed, each gaining 4% on the day, while other majors including Ethereum (ETH), XRP, BNB, and Tron (TRX) posted modest increases between 1% and 3%.
Despite softer labor market data raising hopes for easing, inflation linked to tariffs remains stubborn, leaving the Fed in a tight spot.
“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 a note to CoinDesk.
Market sentiment has shifted rapidly. The Crypto Fear & Greed Index plunged to 44, down from 75 just six days ago, reflecting growing investor caution. Bitcoin’s price action has mirrored that shift, with support now seen near early-August lows.
Technical analysts warn that a breakdown below $108,000 could open the door to a sharper correction toward the psychologically significant $100,000 level.
“Bitcoin bounced from $112,500 after testing month-to-date lows, but a drop below the 50-day moving average has triggered fresh selling,” said Alex Kuptsikevich, chief market analyst at FxPro. “If $108,000 fails, a move to $100,000 becomes increasingly likely.”
He added that crypto markets are losing momentum faster than equities — a sign of rising investor unease.
On-chain indicators are also flashing caution. CryptoQuant data shows short-term holders are now selling at a loss — a behavior not seen since January and often associated with broader market pullbacks. Santiment reports declining volumes despite price rallies, paired with increased retail activity — a combination that has historically marked local tops.
Some analysts argue that Bitcoin’s recent rally may have more to do with dollar weakness than real capital inflows.
“Bitcoin’s latest highs could be more reflective of USD depreciation than actual value growth,” said a report by Presto Research. “When adjusted for currency effects, current BTC levels remain below 2021 peaks and post-2024 election marks.”
As Powell’s remarks draw near, traders are preparing for volatility. A dovish signal could spark a bounce across crypto markets. But any sign the Fed intends to stay cautious may accelerate downside pressure — potentially pushing Bitcoin closer to $100,000.
