Bitcoin News Today: Powell's Final Jackson Hole Speech to Shape Bitcoin's Price Outlook

Federal Reserve Chair Jerome Powell is set to deliver his final Jackson Hole speech this Friday, signaling the end of his tenure, which concludes in May 2026. The speech has become a critical event for global markets, especially for cryptocurrencies like Bitcoin, as Powell’s messaging could significantly influence the asset’s near-term trajectory. Recent minutes from the Fed’s July 29–30 meeting revealed a growing divide within the central bank, with senior officials such as Michelle Bowman and Christopher Waller advocating for a rate cut amid signs of a cooling labor market. Their concerns were quickly validated by the release of weak July jobs data, which revised out more than 250,000 jobs from previous estimates [1].

The minutes also pointed to broader concerns regarding the potential long-term effects of tariffs and high asset valuations on inflation and growth. Several officials emphasized the need for continued monitoring of these factors. While most policymakers agreed to maintain the benchmark interest rate within the 4.25% to 4.50% range, the debate over inflation risks versus employment weakness remains unresolved. Notably, the Fed’s GDP forecasts for 2025–2027 have not changed significantly from those issued in June, suggesting that officials are still gauging the full impact of current monetary policy [1].

The political climate has further complicated the economic outlook. President Donald Trump has criticized the Bureau of Labor Statistics and dismissed its head following the release of the disappointing employment data, highlighting the heightened sensitivity to economic performance as the election cycle approaches [1]. This political dynamic introduces additional uncertainty, making Powell’s speech even more pivotal.

Bitcoin, which has increasingly reflected macroeconomic sentiment, has already shown signs of volatility in response to the Fed’s policy signals. Market participants are now preparing for Powell’s remarks, with three potential price scenarios outlined by analysts. A dovish tone suggesting the possibility of rate cuts could drive Bitcoin toward $135,000 to $150,000, as investors seek risk-on assets and anticipate increased liquidity [1]. A balanced approach—acknowledging labor market weakness while emphasizing inflation control—might keep Bitcoin in a $110,000 to $120,000 range, with investors waiting for more clarity [1]. Conversely, a firm stance against rate cuts and a strong emphasis on inflation risks could trigger a risk-off environment, sending Bitcoin down toward $105,000 or below [1].

The Jackson Hole symposium, therefore, represents a key inflection point for global monetary policy and financial markets. Powell’s final address will be closely scrutinized for any indication of the Fed’s future direction, with Bitcoin serving as a leading indicator of macroeconomic and policy sentiment.

Source: [1] Powell's Last Stand at Jackson Hole: Bitcoin's $150K Dream or $105K Nightmare? (https://coindoo.com/powells-last-stand-at-jackson-hole-bitcoins-150k-dream-or-105k-nightmare/)