Ethereum News Today: Crypto Market Dips Ahead of Fed's Jackson Hole Speech Amid Rate Cut Uncertainty

The cryptocurrency market experienced a broad decline on August 19, 2025, with 92 of the top 100 coins in red over the past 24 hours. The total market capitalization dipped by 0.2%, settling at $3.96 trillion, while the 24-hour trading volume amounted to $154 billion [1]. Among the major cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) fell slightly, with BTC down 0.1% to $115,118 and ETH down 0.7% to $4,237 [1]. Binance Coin (BNB) was the top performer among the top 10, rising 1.3% to $843, followed by XRP and ADA, which gained 1.3% and 0.9% respectively [1].

The market's performance was influenced by anticipation of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium, scheduled for later that week. Investors are closely watching for signals on whether the Fed will proceed with a rate cut in September [1]. Powell had previously indicated that the central bank needed more data on inflation before making a decision. Meanwhile, the probability of a rate cut in September has declined, prompting traders to reposition ahead of the key speech [1].

Nick Forster, founder of onchain options platform Derive.xyz, noted that a continued hawkish stance from the Fed could trigger a rapid correction in digital assets, especially for BTC and ETH [1]. Over the past 24 hours, the market saw over $270 million in liquidations, with $170 million in ETH and $104 million in BTC. The majority—95%—of these were long positions triggered by moderate pullbacks [1]. Implied volatility for ETH spiked in the short term, indicating heightened expectations of near-term volatility [1].

Despite the downward trend, bull sentiment remains intact. The crypto fear and greed index dropped slightly to 53 from 56, suggesting a cautious but not bearish sentiment [1]. Some analysts believe the price of BTC has a 21% chance of reaching $100,000 before the end of September, up from 15%, while ETH has a 60% chance of hitting $4,000, up from 45% [1]. These figures reflect growing expectations for a volatile end to August and the immediate aftermath of the Jackson Hole event.

On the institutional side, U.S. BTC and ETH ETFs continued to see outflows on Monday. The U.S. BTC ETFs lost $121.81 million, with BlackRock and Ark&21Shares experiencing significant outflows. The U.S. ETH ETFs also lost $196.62 million, with BlackRock recording the highest outflow at $87.16 million [1]. These outflows indicate a degree of caution among institutional investors in the current climate of uncertainty.

Meanwhile, U.S. regulatory developments added to the backdrop of market anxiety. Illinois Governor JB Pritzker signed two bills aimed at regulating crypto activity, criticizing the Trump administration’s approach [1]. The U.S. Treasury also invited public input on preventing illicit finance risks associated with digital assets, as part of its ongoing efforts to balance innovation with regulation [1].

The market is preparing for a critical week, with the Fed’s policy outlook and broader macroeconomic indicators shaping the near-term trajectory of digital assets. While the current dip remains within expected ranges, the outcome of Powell’s speech will be a key determinant of market direction in the coming days.

Source: [1] Why Is Crypto Down Today? – August 19, 2025 (https://cryptonews.com/news/why-is-crypto-down-today-august-19-2025/)