Bitcoin hovered around $114,000 on Thursday as investors exercised caution ahead of Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium, while political pressures on the Fed added to the uncertainty.
The world's largest cryptocurrency traded up 0.3% at $114,120 at 5:17 PM Saudi time.
It was nearing a six-week low as it dropped to $112,386 in the previous session.
Bitcoin is moving cautiously amid anticipation of Fed decisions and political pressures.
Markets are preparing for the annual Federal Reserve symposium in Jackson Hole, where Chair Jerome Powell will speak on Friday.
Investors are looking for clarification on whether the central bank is preparing to cut interest rates in September or maintain a steady policy due to ongoing inflation.
Investors avoided making large moves ahead of the speech, keeping Bitcoin trapped near its two-week lows.
Adding to the caution, U.S. President Donald Trump escalated his criticism of the Federal Reserve. Trump called for the resignation of Federal Reserve Governor Lisa Cook and accused Powell of failing to control inflation.
These attacks raised concerns that political pressure could undermine the Fed's independence, leading to increased risk aversion and negatively impacting speculative assets like cryptocurrencies.
Minutes from the Federal Reserve's July meeting, released on Wednesday, showed that most officials were more concerned about rising inflation than about weakness in the labor market.
The central bank kept interest rates unchanged in July, but two Trump-appointed officials objected in favor of a rate cut, marking the first dual objection of this kind in decades.$BTC
