Bitcoin News Today: Bitcoin's $114K Crossroads: Awaiting Fed Clarity in a Stalemated Market

Bitcoin’s price continues to oscillate around the critical $114,000 level, with traders and analysts closely watching whether the cryptocurrency will break down or consolidate above this threshold. Following a recent test of resistance at $114,000, the digital asset has failed to generate a clear upward trend, with bulls seemingly unable to push the price above this key level. This has raised concerns about potential bearish continuation, particularly if the price convincingly moves below $114,000 and holds there through the weekly close [1].

The market structure appears to be under pressure, with bid liquidity lines forming between $109,850 and $111,900. Traders like Daan Crypto Trades have expressed caution about the possibility of price retracing into this range, which could signal weakness in the market’s structure. CoinGlass data indicates that a large band of bid liquidity aligns with the price’s recent lows at around $112,900, suggesting that further declines could trigger increased selling pressure [1].

Meanwhile, macroeconomic developments have had little impact on Bitcoin’s price action. Despite the announcement of a US-EU trade deal, which was expected to stimulate risk-on sentiment in global markets, the S&P 500 and Nasdaq Composite Index both showed limited movement following the news. Bitcoin, too, remained largely unaffected, with traders attributing this to the market's fixation on the $114,000 level and the upcoming Federal Reserve’s Jackson Hole symposium [1].

The uncertainty surrounding the Federal Reserve’s monetary policy has further complicated the market’s outlook. The odds of a rate cut at the September FOMC meeting have fluctuated significantly, with Kalshi data showing a rise in the probability of no cut to 36%, the highest since early August. CME Group’s FedWatch tool, on the other hand, gives a 25% chance of rates being held steady. The divergence in these forecasts has led to a cautious stance among investors, with many recalibrating their expectations as the week progresses [1].

Bitcoin’s recent performance has mirrored the broader crypto market’s decline. On Tuesday, the price dropped below $114,000, marking a 9% decline from its record high above $124,000 earlier in the week. Ethereum also lost ground, falling below $4,200. This trend has extended to altcoins like Chainlink, Avalanche, and Toncoin, all of which declined between 4% and 6% over the same period. The pullback in crypto prices has coincided with a broader risk-off sentiment in traditional markets, with both the Nasdaq and S&P 500 dropping in the morning session [2].

As the market awaits Fed Chair Jerome Powell’s speech at Jackson Hole on Friday, the focus remains on how the central bank will balance inflation concerns against the slowing labor market. The latest PPI report, which showed stronger-than-expected inflation, has reignited fears that rate cuts might be delayed until more economic data becomes available. Analysts at Mosaic Asset have emphasized the significance of Powell’s address, noting that he has historically used this platform to signal pivotal shifts in monetary policy [1].

Source: [1] Bitcoin Ignores US-EU Trade Deal With $114K In Focus (https://cointelegraph.com/news/bitcoin-price-dip-hinges-on-114k-as-markets-shrug-off-us-eu-trade-deal) [2] Bitcoin Drops Below $114K, Ether Loses $4.2K as Jackson ... (https://www.coindesk.com/markets/2025/08/19/bitcoin-drops-below-usd114k-ether-loses-usd4-2k-as-jackson-hole-speech-might-bring-hawkish-surprise) [3] Data: BTC breaks through 114000 USD (https://www.chaincatcher.com/en/article/2198907)