Bitcoin News Today: Bitcoin and Investors Hold Breath as Powell's Jackson Hole Fate Nears

Bitcoin fell to around $113,000 on Thursday as traders prepared for Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday, an event with the potential to shape market sentiment ahead of the autumn. The move marked a continuation of a broader retreat after Bitcoin hit a record high of $124,514 on August 14. The cryptocurrency was down 1.1% as of 7:55 a.m. in New York, having dropped 9% from its peak. Ether, the second-largest token by market capitalization, also declined by 1.7% to $4,280, according to the news content.

With markets closely monitoring Powell’s address, traders are preparing for potential signals about future U.S. monetary policy. The annual gathering brings together central bankers, policymakers, and economists to discuss the global economy, and Powell’s comments have historically triggered sharp movements across asset classes. The speech is expected to be his last as Fed chair, as his term ends in May 2026 and President Donald Trump has indicated he will not reappoint him. This uncertainty, combined with mixed economic data, has traders hedging their positions, with Bitcoin options data showing a surge in activity. The put-to-call ratio for Aug. 22 contracts on Deribit reached 1.33, with $3.8 billion in Bitcoin options expiring, and the largest open interest centered on $110,000 puts. This suggests traders are increasingly seeking downside protection amid the volatility.

The Federal Reserve’s recent policy meeting minutes highlighted that officials still see inflation risks as outweighing employment concerns, reinforcing expectations that Powell may temper hopes for aggressive rate cuts. Inflation has shown a modest uptick, with the Fed’s preferred PCE index rising from 2.1% in April to 2.6% in June—well above the central bank’s 2% target. In contrast, the labor market appears to be losing steam, with the three-month average of job gains falling to just over 35,000 in July. Powell has previously argued that the labor market is still “in balance,” pointing to a slower flow of immigrants reducing the number of new jobs needed to keep the unemployment rate stable. However, with downward revisions to May and June payrolls and a weaker July report, the market is pricing in a 83% chance of a 25-basis-point cut in September and at least 50 basis points by year-end, according to the CME FedWatch tool.

The broader crypto market has also seen shifts in institutional behavior. Spot Bitcoin and Ether ETFs have recorded four consecutive outflows, with investors withdrawing $1.9 billion, while Ethereum’s recent performance has outpaced Bitcoin in part due to the emergence of spot ETFs and its role in supporting the stablecoin ecosystem. JPMorgan has expressed a bullish outlook on Ethereum, citing its growing dominance in the stablecoin market, where around $138 billion of the $276 billion in stablecoins are issued on the Ethereum blockchain. Meanwhile, Tom Lee, through Bitmine, has built one of the largest corporate Ethereum treasuries, accumulating $5.26 billion worth of ETH. This strategic shift reflects a growing belief in Ethereum’s utility through staking, smart contracts, and scalability, contrasting with Bitcoin’s more passive “digital gold” narrative.

As the market awaits Powell’s speech, the outcome will likely influence not only U.S. interest rates but also the trajectory of risk assets like cryptocurrencies. A hawkish tone could reinforce caution, while a dovish pivot may reinvigorate investor optimism. With macroeconomic indicators and policy developments remaining key drivers, the crypto market is bracing for a pivotal moment at Jackson Hole.

Source: [1] Harvard professor who predicted bitcoin crash to USD100 says regulators were too lax (https://www.coindesk.com/markets/2025/08/21/harvard-professor-who-predicted-bitcoin-crash-to-usd100-says-regulators-were-too-lax) [2] Bitcoin price rises ahead of Fed Jackson Hole speech (https://uk.finance.yahoo.com/news/bitcoin-price-crypto-federal-reserve-jackson-hole-085201361.html) [3] Bitcoin Traders Jittery Ahead of Powell's Jackson Hole Speech (https://finance.yahoo.com/news/bitcoin-traders-jittery-ahead-powell-084743210.html) [6] Powell faces economic crossroads: Jackson Hole speech and Fed chair tenure nears end (https://www.foxbusiness.com/economy/powell-faces-economic-crossroads-jackson-hole-speech-fed-chair-tenure-nears-end) [7] Jackson Hole Jolt Coming? Here's What Fed Chair Powell ... (https://www.investors.com/news/economy/jackson-hole-jolt-federal-reserve-chairman-jerome-powell-inflation-unemployment-rate/) [8] Jerome Powell's Jackson Hole Speech Could Make or ... (https://www.investopedia.com/jerome-powells-jackson-hole-speech-could-make-or-break-stock-market-rally-11794428)