Bitcoin Slides Below $114K as Investors Brace for Powell’s Jackson Hole Speech

Bitcoin dropped under the $114,000 mark on Thursday, deepening this month’s losses as the crypto market eyes Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole Economic Symposium.

After surging to an all-time high of $124,000 earlier in August, Bitcoin has retreated sharply, falling nearly nine percent in just seven days. By early Friday, the flagship cryptocurrency was trading at approximately $113,242, a 0.66% dip over the past 24 hours, with intraday lows touching as little as $112,482. The slide mirrored widespread caution across financial markets amid renewed uncertainty about the Fed’s future policy direction.

Central Bank Uncertainty Fuels Volatility

The timing of Powell’s upcoming address has amplified market jitters. Last year’s Jackson Hole remarks set off a global asset rally as Powell hinted at policy easing; now, traders remain divided over whether the Fed might delay anticipated rate cuts given persistently high inflation and spotty US growth data. Historically, Jackson Hole has served as a bullhorn for major central bank pivots, so investors are parsing every signal for clues on macroeconomic direction.

“The next few sessions hinge entirely on Powell’s tone,” said Rekt Capital, a prominent market analyst. “Bitcoin is rejecting from $114k resistance on the daily chart. A weekly close below that area opens downside toward $110,000, which many view as a buy zone, assuming macro conditions cooperate.”

Meanwhile, institutional participants are reportedly maintaining long-term optimism. “Despite price chop and ETF outflows, we see signs that large players remain committed,” a senior strategist at a major asset manager told Analytics Insight. “The pullback may offer new entry points if the Fed’s message is clearer and risk appetite recovers”.

Market Data: Bitcoin, Crypto Indices, and Trading Volumes

Thursday’s drop trimmed Bitcoin’s market capitalization to approximately $2.25 trillion, a 0.66% daily decline and a 0.33% drop from the previous day. Despite the recent correction, Bitcoin’s market cap is up 84.75% compared to the same period last year, reflecting the asset’s enduring strength after a turbulent 2024.

Broader cryptocurrency indices followed suit, with the total crypto market cap slipping 0.92% to $3.83 trillion. Trading volume saw a parallel contraction, falling to $317.29 billion as traders waited on fresh macro signals.

What’s Next for Bitcoin?

While some analysts see the $112,000–$114,000 region as crucial technical support, risks remain elevated in the short term. Hawkish rhetoric from the Fed could prompt further drawdowns, possibly testing the $110,000 or even $100,000 psychological levels if market anxiety persists.

Conversely, any dovish pivot or strong signal of easing monetary policy may reignite risk-taking, setting the stage for a renewed rally. However, with ETF outflows and diminished liquidity adding further complexity, the path forward will likely remain volatile.

For now, crypto investors are poised on the sidelines, waiting for tomorrow’s speech to clarify the Fed’s resolve and reset market expectations for the remainder of the year.