Bitcoin News Today: Tech's Tectonic Shift: Investors Seek Safety as Fed Prepares to Speak

The Nasdaq Composite fell more than 1.5% on Tuesday, as tech stocks continued to underperform amid growing macroeconomic concerns and shifting market leadership. The broader S&P 500 declined by roughly 0.6%, while the Dow Jones Industrial Average closed near the flat line. The selloff was led by sharp declines in Palantir Technologies (PLTR), which fell nearly 9%, and Advanced Micro Devices (AMD), which dropped over 5%. Nvidia (NVDA), another major tech player, also lost about 3.5% of its value [2]. This marks a continuation of a broader trend where leadership in the market has begun to shift from a handful of dominant growth stocks to more economically sensitive sectors like healthcare, real estate, and utilities [2].

The Nasdaq’s decline came as investors turned their attention to broader economic indicators, particularly inflation and employment data, which remain key factors in shaping expectations for the Federal Reserve’s policy path. The July wholesale inflation report, which showed higher-than-expected readings, raised questions about the possibility of a September rate cut [3]. Additionally, recent downward revisions to the July jobs report highlighted a cooling labor market, with just 73,000 jobs added in July—far below expectations—while the unemployment rate edged up to 4.3% [5].

Amid this backdrop, Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole economic symposium has become a focal point for investors. The event, scheduled for Friday, is expected to be Powell’s last as Fed chair, given that his term is set to expire in May 2026 and President Donald Trump has indicated he will not seek a reappointment. Powell is expected to address the Fed’s policy path, including whether rate cuts will resume in September. Markets are currently pricing in a 25-basis-point rate cut, with some anticipation for a larger move [6]. The speech will also likely cover potential changes to the Fed’s monetary policy framework, including a shift away from average inflation targeting to a stricter 2% inflation target [6].

Bitcoin, which had reached a record high of $124,496 earlier in the week, fell to $116,394.87, a decline of 1.1% as macroeconomic concerns and profit-taking triggered a wave of liquidations across the crypto market. Over $500 million in long positions were forced to sell in a 24-hour period, according to CoinGlass data, with long liquidations for Bitcoin and ether amounting to $124 million and $184 million, respectively [3]. The broader cryptocurrency market also saw losses, with the CoinDesk 20 index dropping 1.2% as investors braced for potential volatility ahead of the Jackson Hole event [3].

The performance of crypto ETFs remains a key indicator of institutional demand for digital assets. Despite recent outflows on Friday, ETFs tracking bitcoin and ether logged net inflows of $547 million and $2.9 billion, respectively, for the week, highlighting continued investor interest [3]. However, concerns over the Genius Act stablecoin bill and its potential to trigger massive deposit outflows have added to the uncertainty in the crypto space. The Bank Policy Institute and major banking groups have called for a legislative fix to a loophole that allows stablecoin issuers to pay interest, warning that it could destabilize the broader financial system [4].

As the market awaits key data releases, including the July PCE inflation report on Aug. 29 and the August jobs report on Sept. 5, the focus will remain on the Federal Reserve’s policy decisions and how they impact both traditional and digital asset markets.

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[1] Meet the Monster Stock That's Crushing Nvidia and Palantir (https://www.nasdaq.com/articles/meet-monster-stock-thats-crushing-nvidia-and-palantir-market)

[2] Nasdaq drops over 1% as Palantir, AMD drag down tech (https://finance.yahoo.com/news/live/stock-market-today-nasdaq-drops-over-1-as-palantir-amd-drag-down-tech-200335512.html)

[3] Bitcoin sinks to $115000 after hitting its newest record, as... (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[4] Bitcoin Price Crash Fears Gather As Crypto Braces For A... (https://www.forbes.com/sites/digital-assets/2025/08/19/wall-street-issues-serious-66-trillion-crypto-warning-as-price-crash-fears-hit-bitcoin-ethereum-and-xrp/)

[5] Fed chair Powell to speak at Jackson Hole amid rate cut... (https://www.foxbusiness.com/economy/powell-faces-economic-crossroads-jackson-hole-speech-fed-chair-tenure-nears-end)

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

[7] The Fed's Jackson Hole Symposium Starts This Week... (https://www.investopedia.com/the-fed-s-jackson-hole-symposium-starts-this-week-here-s-what-you-should-know-11792937)