Bitcoin slides to the USD $ 112,000 before Powell’s speech in Jackson Hole

By Hannah Pérez

Bitcoin backed towards USD $ 112,200 as the market emphasizes its expectations about a cut. The bankers are divided but they seem more inclined to leave the rates without change in September.

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• The president of the Federal Reserve, Jerome Powell, will rule tomorrow at Jackson Hole.
• Prices fall when investors emphasize their expectations about a rate cut.
• Bitcoin backed back to USD $ 112,500 in high volatility and uncertainty.
• The bankers are divided but are inclined to leave the rates without change in September.

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Bitcoin (BTC) has experienced a 1.4% drop in the last 24 hours, contributing slightly below USD $ 112,300 at the time of writing these lines, according to data from Coingcko.

This decrease is framed in a broader bearish trend that affects the cryptocurrency market in recent days, with the total market capitalization falling 1.7% in the same period. Other important cryptocurrencies, such as Ethereum (ETH), have also registered losses, with a decrease of more than 2% to USD $ 4,213.

Just a week ago, Bitcoin It reached a historical maximum above the USD $ 124,000, promoted by the expectations of a cut in interest rates by the Federal Reserve of the United States. (FED) at its September meeting. However, the initial enthusiasm has vanished as investors adjust their expectations before the expected speech of the president of the Fed, Jerome Powell, in the economic symposium of Jackson Hole, Wyoming, this Friday.

The markets are attentive to any signal on the future direction of monetary policy, in a context of economic uncertainty.

Divided bankers on rates

Yesterday, the publication of the Minutes of the Fed Meeting revealed divisions among the officials of the Central Bank. While some expressed concern about the weakening of the labor market, others highlighted the risk of persistent inflation, which has rebounded due to global tariffs promoted by President Donald Trump. The majority agreed that it was not yet time to reduce interest rates, according to CNBC.

To this uncertainty the comments of The president of the Federal Reserve of Cleveland, Beth Hammack, who reinforced the cautious position of the Central Bank.

“We have too high inflation and has had an upward trend during the last year. If the meeting were tomorrow, I would not see reasons to reduce interest rates“Hammack said in an interview with Yahoo News In Wyoming.

These statements reflected the support that Powell maintains among several Fed bankers, which are alienated with their position despite the pressures of President Trump to implement aggressive cuts in the rates.

Investors adjust your expectations

On the decentralized platform of predictions Polymarketthe chances of interest rates remain unchanged next month significantly increased, from 13% a 41% week ago in the last hours.

This change reflects a recalibration of market expectations, which a week ago assigned a probability close to 100% to a cut in September, according to tool data Fedwatch of Cme.

On the other hand, the political context adds more complexity. According to a survey of CNBCPresident Trump could nominate his main economic advisor, Kevin Hassett, as the next president of the Fed, which He would mark Powell’s last appearance in Jackson Hole as leader of the US Central Bank.

This possible change generates concern about the independence of the Fed, especially due to Trump’s insistence on reducing rates to three percentage points below the current range of 4.25% to 4.5%. Figures such as the former president of the Federal Reserve of St. Louis, Jim Bullard, have also advocated 100 lower basic points, intensifying the debate.

The cryptocurrency market is in suspense before the Fed dilemma: how to balance the need to contain inflation without triggering a recession in a labor market that shows signs of fragility. Powell’s speech in Jackson Hole will be crucial to clarify how Fed plans to navigate these challenges, while risk asset investors adjust their strategies in an uncertain environment.

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Article written and edited with the help of AI, by Hannah Pérez / Diariobitcoin

Image generated with AI tool, under free use license

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