Bitcoin News Today: The Fed’s Signal Could Reshape Bitcoin’s Fate at Jackson Hole

Bitcoin and altcoins continued their decline ahead of Federal Reserve Chair Jerome Powell’s anticipated speech at the Jackson Hole economic symposium, as investors brace for potential signals regarding interest rate policy. Bitcoin (BTC) dipped below $113,000 at the Wall Street open, marking a two-week low last seen on August 3. Analysts noted that the price movement appeared increasingly orchestrated, with some pointing to bid liquidity being taken at key levels on exchanges, suggesting potential market manipulation [1].

The recent pullback comes amid heightened macroeconomic tensions, particularly with the Fed’s looming policy decisions. The CME Group’s FedWatch tool currently estimates an 80–95% probability of a 25-basis-point rate cut at the September 17 Federal Open Market Committee (FOMC) meeting. However, incoming data could shift expectations quickly, adding volatility to the crypto and broader financial markets [2]. Powell’s speech will be closely watched for language confirming or altering these market forecasts, as he has historically used the Jackson Hole platform to outline upcoming policy changes [6].

The decline in Bitcoin has also had a ripple effect on altcoins, with the total market cap showing signs of volatility. Some commentators warned that a continued drop in Bitcoin could trigger double-digit declines in altcoins, particularly those with high leverage. Ethereum (ETH), for instance, has drawn attention as a large whale opened a $16.35 million long position at $4,229.83, using 25x leverage. This trade reflects bullish sentiment, with Ethereum hovering above its 20-day exponential moving average and forming a potential falling wedge pattern, which technical analysts view as a classic reversal setup [4].

Corporate activity in the crypto space has continued despite the market’s recent turbulence. As of the latest data, at least 297 public entities were holding Bitcoin, up from 124 at the beginning of June. These included corporations, investment funds, and governments collectively holding approximately 3.67 million BTC—nearly 17% of the total supply. Bitmine Immersion Technologies, led by Tom Lee, has emerged as one of the largest corporate Ethereum holders, accumulating 1.174 million ETH valued at $5.26 billion [5]. Lee’s strategy highlights a shift in institutional investor sentiment, with Ethereum’s staking and smart contract capabilities increasingly seen as an advantage over Bitcoin’s more passive "digital gold" narrative.

Investor expectations for a rate cut in September have driven speculation about the broader economic implications. Analysts from QCP Capital emphasized that the stakes for the Fed are high, as it seeks to balance inflation control against labor market risks. A 25-basis-point cut could accelerate money supply growth and support ongoing Bitcoin rallies at least until year-end [2]. Meanwhile, Bernstein analysts projected a longer-term bull market for Bitcoin, forecasting a potential price peak between $150,000 and $200,000 by 2027. They attributed this optimism to regulatory reforms and the broader adoption of crypto into mainstream financial instruments, such as retirement plans [3].

With Powell’s speech expected to clarify the Fed’s stance, the cryptocurrency market remains in a state of anticipation. While Bitcoin and altcoins face near-term volatility, the potential for policy-driven market catalysts continues to shape investor sentiment. The coming days will be critical in determining the trajectory of the market, as both crypto and traditional asset classes react to the central bank’s messaging [6].

Source:

[1] Bitcoin analysts point to 'manipulation' as BTC price falls to 17-day low (https://cointelegraph.com/news/bitcoin-analysts-point-to-manipulation-as-btc-price-falls-to-17-day-low)

[2] Investors brace for Powell speech as Bitcoin dips near $112K (https://cointelegraph.com/news/bitcoin-dips-fed-powell-speech)

[3] Bitcoin could reach $200,000 within 6 months during 'long exhausting bull run' (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html)

[4] Ethereum whale opens $16.3M long as ETH price eyes bounce (https://cointelegraph.com/news/ethereum-whale-opens-16-3m-long-as-eth-price-eyes-bounce)

[5] Tom Lee's $5 Billion Ethereum Bet Puts Bitcoin Maximalists on Notice (https://finance.yahoo.com/news/tom-lees-5-billion-ethereum-114604680.html)

[6] Powell's Jackson Hole speech could setup a policy tweak that lasts well beyond his tenure (https://finance.yahoo.com/news/powells-jackson-hole-speech-could-setup-a-policy-tweak-that-lasts-well-beyond-his-tenure-174606260.html)