Investors brace for Powell speech as Bitcoin dips near $112K

Cryptocurrency investors are 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 briefly fell to $112,565 on Wednesday, a two-week low last seen on Aug. 3, Cointelegraph data shows.

Bitcoin’s dip below $113,000 is a snapshot of “rising nerves in the market” as macroeconomic tensions surrounding Powell’s speech are causing “fear spikes” among digital asset traders, according to Ryan Lee, chief analyst at Bitget exchange.

“Now, letting the narratives settle and liquidity return might pave the way for a rebound,” the analyst told Cointelegraph, 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.”

Corporations keep accumulating Bitcoin

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 well above the Fed’s 2% target.

Following the CPI news, expectations for an interest rate cut fell by over 12%, to 82% on Wednesday, down from over 94% a week ago, according to the latest estimates of the CME Group’s FedWatch tool.

The first interest rate cut of 2025 may become a significant market catalyst, triggering expectations of two or three total interest rate reductions before the end of the year, according to André Dragosch, head of European research at crypto asset manager Bitwise.

“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 told Cointelegraph, adding that the rate cuts may be the most significant macro development to “support” the continuation of Bitcoin’s rally “at least until the end of the year.”

Despite a significant sentiment shift among retail investors, corporations continue acquiring the world’s two leading cryptocurrencies.

Over 297 public entities are now holding Bitcoin, up from 124 at the beginning of June.

These include 169 public firms, 57 private firms, 44 investment and exchange-traded funds, and 12 governments that scooped up 3.67 million BTC, representing over 17% of the total supply, according to BitcoinTreasuries.NET.