Crypto Prices Steady Before Key Fed Speech
Bitcoin traded near $113,000 Friday morning as investors awaited Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, a closely watched macroeconomic event that could set the tone for global markets.
According to crypto price data, bitcoin slipped 0.74% in the past 24 hours to $113,018, while Ethereum edged down 0.1% to $4,284. The broader cryptocurrency market also showed muted movement ahead of Powell’s remarks.
Hawkish Powell Could Pressure Bitcoin
“Consensus points to a hawkish Powell at Jackson Hole due to recent data points,” said Vincent Liu, CIO at Kronos Research. “A dovish surprise could spark a rally, while hawkish remarks may deepen selling.”
If Powell signals tighter monetary policy, analysts warn the crypto market could enter risk-off mode, with bitcoin potentially facing a correction of up to 30%. BTC Markets analyst Rachael Lucas noted that this pullback aligns with bitcoin’s natural four-year halving cycle, where prices often dip in September before rebounding toward the year’s end.
Rate Cut Expectations Under Pressure
The Federal Reserve is still widely expected to cut interest rates in September. The CME FedWatch Tool currently shows a 74.4% probability of a 25 basis point rate cut. However, mixed economic data has clouded confidence.
July’s Consumer Price Index came in cooler than expected and jobless claims rose, pointing to easing inflationary pressures. At the same time, a hotter-than-expected Producer Price Index and persistent inflation in core services suggest inflation remains sticky. Trump’s tariffs are also adding pressure to prices.
Minutes from the Fed’s July meeting showed officials divided, with some members signaling there may be no need for a September rate cut.
What Comes Next for Bitcoin and Crypto
If Powell keeps a neutral stance and avoids signaling rate moves, analysts expect bitcoin and other cryptocurrencies to remain in consolidation mode as traders wait for clearer guidance.
Beyond Jackson Hole, the next catalysts for the crypto market will come from U.S. inflation data, upcoming Fed policy meetings, and ETF flows. Policy risks, including Trump’s tariff measures, remain in focus for investors watching bitcoin’s next move.
