Bitcoin Dips to Two-Week Low Around $113K Ahead of Fed Jackson Hole Event
Bitcoin falls 1.1% to $113,728, nearing six-week low amid Fed rate cut concerns.
Investors await Powell’s Jackson Hole speech; futures price 25bps cut amid Russia-Ukraine talks.
Fed’s Bowman supports small crypto holdings; Ether down 1.7% at $4,162, Cardano falls 8%.
Bitcoin Falls to Two-Week Low Amid Investor Caution
Bitcoin continued its downward trajectory on Wednesday, hitting a two-week low as investors trimmed their positions ahead of the Federal Reserve’s upcoming Jackson Hole symposium.
The largest cryptocurrency by market value last traded down 1.1% at $113,728.5 as of 02:03ET (06:03GMT), narrowly missing a six−week low recorded earlier in the day at $112,668.
After reaching an all-time high above $124,000 last week, Bitcoin sharply retreated following stronger-than-expected U.S. economic data, which dampened hopes for a significant Fed rate cut next month.
Market Anticipation Ahead of Fed Symposium and Geopolitical Concerns
Attention is focused on the Federal Reserve’s annual Jackson Hole gathering, where Chair Jerome Powell is scheduled to speak on Friday. Investors fear a hawkish message or signals contradicting expectations of a September rate cut may put further pressure on risk assets like Bitcoin. Market futures have moderated their outlook, now pricing in a 25-basis-point Fed rate decrease in September.
In parallel, geopolitical developments also weighed on cryptocurrencies. U.S. President Donald Trump recently held talks with Ukrainian President Volodymyr Zelenskiy and European leaders to discuss potential peace negotiations involving Russia and Ukraine. Though optimistic in the longer term, the uncertainty surrounding these talks has unsettled markets in the short term.
Regulatory Shifts and Altcoins Join the Downtrend
On the regulatory front, Federal Reserve Vice Chair for Supervision Michelle Bowman advocated for central bank employees to be permitted to hold nominal “de minimis” amounts of digital assets. Bowman argued this would enhance regulators’ understanding and oversight capabilities of emerging crypto technologies, urging a balanced approach given inherent risks. Her stance illustrates a more proactive regulatory posture under the present administration.
Meanwhile, most major altcoins mirrored Bitcoin’s declines Wednesday.
Ether slipped 1.7% to $4,162.54
XRP fell 4.1% to $2.89
Cardano dropped 8%
Solana remained fairly steady
Polygon decreased by 6%
And among meme tokens, Dogecoin lost 2%, with $TRUMP down 2.8%.
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