Crypto Market correction driven by investor fear spikes ahead of Powell speech
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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, Cointelegraph data showed. 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. “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.” BTC/USD, one-day chart. Source: Cointelegraph Related: Crypto in US 401(k) retirement plans may drive Bitcoin to $200K in 2025 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. Fed target interest rate probabilities. Source: 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…
Filed under: News - @ August 21, 2025 6:28 am