The price of #BTC fell below $113,000 as investors prepared for Jerome Powell's speech in Jackson Hole, which could determine the course of the Fed's U.S. interest rate cuts.
Cryptocurrency investors were preparing for the annual meeting of the U.S. Federal Reserve in Jackson Hole on Friday, where remarks from its chairman Jerome Powell could provide key signals regarding interest rate policy ahead of the Federal Open Market Committee meeting in September.
On Wednesday, bitcoin briefly fell to $112,656, which is a two-week low, last seen on August 3.
According to Ryan Lee, chief analyst at Bitget exchange, the drop #bitcoin below $113,000 reflected "increasing nervousness in the market," as the macroeconomic tension triggered by Powell's speech caused "spikes of fear" among digital asset traders.
"Now, if the market dynamics calm down and liquidity returns, it could pave the way for a rebound," said a Cointelegraph analyst, adding that if the support level at $112,000 holds until the speech, it could provide a "preparation for the next stage of the bull rally, rather than a reboot."
Corporations continue to accumulate bitcoins.
Investor concerns regarding a potential delay in the interest rate cut intensified on August 12 after the U.S. Consumer Price Index (CPI) showed a 2.7% increase in consumer prices year-over-year. This figure remained unchanged since June but significantly exceeds the Fed's target of 2%.
According to the latest estimates from the FedWatch tool of CME Group, after the consumer price index news, expectations for an interest rate cut fell by more than 12% to 82% on Wednesday, compared to over 94% a week ago.
According to Andre Dragosh, head of European research at Bitwise, a crypto asset management company, the first interest rate cut in 2025 could be a significant market catalyst, sparking expectations of two or three total rate cuts by the end of the year.
"Once the Fed begins to cut rates, the curve will steepen, which implies even more acceleration and growth of the money supply in the U.S.," Dragosh told Cointelegraph, adding that the rate cuts could become the most significant macroeconomic event that "supports" the continuation of the bitcoin rally "at least until the end of the year."
Despite a significant shift in sentiment among retail investors, corporations continued to acquire the two leading cryptocurrencies in the world.
At least 297 public organizations owned bitcoins, while at the beginning of June there were 124.
These include 169 public companies, 57 private companies, 44 investment and exchange funds, as well as 12 governments that acquired 3.67 million BTC, which accounts for over 17% of the total supply.
$BTC #BitcoinBasics #altcoins #Binance