Bitcoin price drop below $113,000 ahead of Jerome Powell’s Jackson Hole speech reflected rising market nervousness as traders priced a later-than-expected Fed rate cut; the move narrowed liquidity and put focus on $112,000 support as a key level for a near-term rebound.
Bitcoin slipped to $112,565 as traders awaited Powell’s remarks.
Fed rate-cut timing and CPI data tightened risk appetite and lowered cut odds.
Corporations continued accumulation: ~3.67M BTC held by public entities per BitcoinTreasuries.NET.
Meta description: Bitcoin price drop precedes Jackson Hole speech as traders weigh Fed rate-cut timing; read analysis, corporate accumulation data, and key takeaways. Learn what to watch.
What caused the Bitcoin price drop ahead of the Jackson Hole speech?
Bitcoin price drop was triggered by elevated macro uncertainty and a higher-than-expected US CPI print that reduced odds of an imminent Fed rate cut. Short-term liquidity tightened as traders hedged ahead of Jerome Powell’s Jackson Hole speech, pushing BTC briefly to $112,565 and testing $112,000 support.
How did CPI and Fed policy expectations affect crypto markets?
US Consumer Price Index (CPI) rose 2.7% year-over-year in the latest release, remaining above the Fed’s 2% target and tempering rate-cut expectations. Market-implied odds for a near-term cut fell materially, according to plain-text reference to CME Group’s FedWatch tool, which shifted probabilities and heightened risk-off positioning in crypto.
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Analyst commentary signaled increased volatility. Ryan Lee, chief analyst at Bitget exchange, described the move as “fear spikes” driven by macro uncertainty. André Dragosch, head of European research at Bitwise, noted that eventual Fed rate cuts could materially support crypto via steeper yield curves and faster money-supply growth.
BTC/USD, one-day chart. Source: Cointelegraph
Why does $112,000 matter for Bitcoin’s near-term outlook?
$112,000 is a technical and psychological support band; a hold at that level before the Jackson Hole speech would reduce downside risk and could set up a continuation of the bull trend. If the level fails, traders may reprice risk and widen stop runs, increasing volatility.
How are corporations affecting Bitcoin supply dynamics?
Corporate accumulation remains a structural support for Bitcoin. Plain-text data from BitcoinTreasuries.NET indicates at least 297 public entities holding Bitcoin—up from 124 in early June—with roughly 3.67 million BTC held by public firms, private firms, funds and governments, representing over 17% of total supply.
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Fed target interest rate probabilities. Source: CME Group’s FedWatch tool
How should traders interpret Fed signals at Jackson Hole?
Read Powell’s tone for forward guidance on timing and sequencing of rate cuts. A dovish tilt that confirms earlier cuts could trigger risk-on flows, while a hawkish or uncertain message may extend the current correction. Manage position sizing and monitor liquidity across spot and derivatives markets.
Key institutional voices — including Bitget and Bitwise in plain-text references — emphasize that confirmed rate cuts would likely accelerate liquidity and support crypto upside, while delayed cuts compress risk appetite.
Source: BitcoinTreasuries.NET
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Frequently Asked Questions
Did Bitcoin actually fall below $113,000?
Yes. Bitcoin briefly traded at $112,565 on Wednesday, a two-week low, as investors squared positions ahead of the Jackson Hole speech and digested CPI data.
Will a Fed rate cut automatically send Bitcoin to new highs?
A Fed rate cut can be a strong catalyst for risk assets by easing real yields and boosting liquidity, but other factors—market positioning, macro surprises and on-chain supply—will determine magnitude and sustainability.
Are corporations still buying Bitcoin despite the dip?
Yes. Corporations, funds and some governments have continued to accumulate Bitcoin; plain-text figures show roughly 3.67 million BTC held across ~297 public entities per BitcoinTreasuries.NET.
Key Takeaways
- Immediate cause: CPI and Fed-cut odds tightened liquidity and pushed BTC to $112,565.
- Structural support: Corporate accumulation (≈3.67M BTC) reduces available supply pressure.
- Actionable insight: Watch Powell’s tone and $112,000 support; manage risk and size positions ahead of announcements.
Conclusion
Bitcoin’s short-term weakness reflects macro-driven positioning ahead of the Jackson Hole speech, with CPI data and Fed rate-cut probabilities central to price action. Corporate accumulation and potential future rate cuts remain key bullish supports. Monitor Federal Reserve guidance and on-chain supply metrics for the next directional move.
Bitcoin fell below $113,000 as investors braced for Jerome Powell’s Jackson Hole speech that could set the US Fed’s path on interest rate cuts.
Cryptocurrency investors were bracing for the US Federal Reserve’s annual gathering in Jackson Hole on Friday, where Chair Jerome Powell’s remarks may provide key signals on interest rate policy heading into September’s Federal Open Market Committee meeting.
Bitcoin (BTC) briefly fell to $112,565 on Wednesday, a two-week low last seen on Aug. 3, according to market data referenced in plain text.
Bitcoin’s dip below $113,000 was a snapshot of “rising nerves in the market” as macroeconomic tensions surrounding Powell’s speech were causing “fear spikes” among digital asset traders, according to Ryan Lee, chief analyst at Bitget exchange (plain-text reference).
“Now, letting the narratives settle and liquidity return might pave the way for a rebound,” the analyst told media in plain text, adding that if the $112,000 support level holds until the speech, it may provide the “setup for the next leg of the bull run rather than a reset.”
Investor concerns over a potential interest rate cut delay were exacerbated on Aug. 12, after the US Consumer Price Index (CPI) showed consumer prices rising 2.7% year-over-year, which remained unchanged from June but remained above the Fed’s 2% target.
Following the CPI news, expectations for an interest rate cut fell by over 12 percentage points, to 82% on Wednesday from over 94% a week earlier, per plain-text reference to CME Group’s FedWatch tool estimates.
The first interest rate cut of 2025 may become a significant market catalyst, triggering expectations of multiple reductions before year-end, according to André Dragosch, head of European research at crypto asset manager Bitwise (plain-text reference).
“The moment you see further rate cuts by the Fed, the curve will steepen, which implies even more acceleration and US money supply growth,” Dragosch said in plain text, adding that rate cuts may be the most significant macro development to support continuation of Bitcoin’s rally at least until the end of the year.
Despite a significant sentiment shift among retail investors, corporations continued acquiring the world’s two leading cryptocurrencies.
At least 297 public entities were holding Bitcoin, up from 124 at the beginning of June. These included 169 public firms, 57 private firms, 44 investment and exchange-traded funds, and 12 governments that together held about 3.67 million BTC, representing over 17% of total supply, per BitcoinTreasuries.NET (plain-text reference).
Magazine: Bitcoin OG Willy Woo has sold most of his Bitcoin — Here’s why (plain-text mention)
Source: https://en.coinotag.com/bitcoin-falls-below-113000-as-powells-jackson-hole-remarks-could-influence-fed-rate-outlook-corporates-continue-accumulating/