$BTC Bitcoin, which peaked above $124,000 last week, retreated to $115,000 after higher-than-expected producer inflation data dented market risk appetite.

This week's Fed meeting minutes and Fed Chair Jerome Powell's remarks at the Jackson Hole symposium will be closely watched due to the potential impact of future interest rate forecasts.

This week, the macro agenda will be closely monitored in both traditional markets and crypto assets. The minutes from the Fed's latest meeting, along with remarks by Chair Jerome Powell at Friday's Jackson Hole event, as well as speeches by other Fed members, will be closely watched.

Weak US labor force data and lower-than-expected inflation data released in recent weeks have reinforced hopes that the Fed will cut interest rates in September. However, producer inflation recorded its largest increase in three years, revealing the impact of President Donald Trump's heavy tariff policies.

In light of this outlook, Bitcoin also experienced a slight pullback in the new week, marked by a busy macroeconomic climate. The cryptocurrency, which peaked above $124,000 last week, opened the week at $115,000 due to the selling wave seen over the weekend.

In parallel with Bitcoin's pullback, leading altcoins such as Ethereum, XRP, Solana, and Dogecoin also traded lower in the last 24 hours.

Vincent Liu, CIO of Kronos Research, said, "Bitcoin's recent decline reflects investor caution due to the higher-than-expected US inflation data. High inflation is dampening expectations for a Fed interest rate cut, strengthening the dollar, and increasing risk aversion. Investors are holding back as they await clearer macro and crypto signals to re-enter the market." Powell and Jackson Hole

Investors, who have been anticipating a rate cut for some time following the US tariffs that disrupted record market rallies, will be closely monitoring Fed statements and potential signals from Powell this week.

Furthermore, the July minutes, which will be released on Wednesday, will be on the market's radar, following the Fed's 9-2 vote to keep interest rates steady. This decision marks the first time since 1993 that two members have defied consensus by voting for a rate cut. However, Powell's press conference following the rate decision proved insufficient for markets seeking clarity.

The minutes could reveal just how divided the committee is on the interest rate decision. A dovish statement could have a positive impact on stocks, lowering bond yields and weakening the dollar. This could also provide a positive outlook for Bitcoin, which is currently trading in correlation with traditional stock markets.

However, a hawkish message could suppress growth and signal a more cautious stance among investors heading into Friday's Jackson Hole symposium.

Powell's remarks are significant because past Jackson Hole speeches have reset interest rate and growth expectations. Indeed, the impact of these speeches has spread to stocks, bonds, and crypto assets in the past.

If Powell emphasizes slowing growth, this would signal a dovish tone. Because interest rate cuts are already reflected in prices, bond yields could fall while growth stocks lose value, potentially benefiting Bitcoin through a resurgence of risk appetite.

However, if the Fed Chair emphasizes stable inflation, such a hawkish tone could increase bond yields and potentially derail Bitcoin's rally.