- Bitcoin dropped below $115,000 after setting a record high of more than $124,000 earlier this month.
- Investors and traders are waiting for the Federal Reserve Chair’s speech at the Jackson Hole Summit, which could signal future interest rate changes.
- Market participants are watching if the Fed will implement a 0.25% rate cut in September, with Bitcoin’s momentum hinging on this decision.
- Major support for Bitcoin stands at $112,000, with resistance between $120,000 and $125,000.
- Changes in regulations, ETF flows, and altcoin demand are influencing Bitcoin’s price and market dominance.
Bitcoin fell below $115,000 on August 18, after reaching a record high of over $124,000 earlier in the month. The market’s focus is now on the upcoming speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Summit, where investors expect clues about potential interest rate decisions in September.
According to Coinbase data from TradingView, a wave of profit-taking followed as several major cryptocurrencies hit all-time or near-all-time highs. Ryan Rabaglia, general partner at Rise Capital, said: “With some of the majors hitting all time highs or near highs, we saw a significant amount of profit taking that followed.” Rabaglia added that attention now turns to the Jackson Hole event between August 21 and 23, with expectations set for policy guidance.
At previous Jackson Hole Summits, the Fed chair has announced key policy shifts, including rate increases or cuts. This year, Rabaglia expects Powell’s speech to set the stage for the Federal Reserve’s actions in September. Market sentiment currently favors a 0.25% (25 basis point) rate cut, according to Rabaglia.
Tom Bruni, editor-in-chief at Stocktwits, said in an email, “With traders and investors shifting their attention toward the September Fed meeting, this week’s Jackson Hole event has come front and center with all ears on Jerome Powell’s commentary.” Bruni noted that Bitcoin’s inability to hold its price rally has put traders in a wait-and-see mode, with many watching the 200-day moving average near $100,000 as the next major support if prices fall further.
Greg Magadini of Amberdata described the Jackson Hole speech as a critical point, noting “The Jackson Hole speech is likely going to be Powell’s last defense for Fed independence and he could use the speech as an opportunity to play ‘hardball’ against the Trump Admin’s pressure to cut rates.” U.S. President Donald Trump has called for lower interest rates and has raised the possibility of replacing Powell before his term ends next year.
Joe DiPasquale, CEO at BitBull Capital, pointed out that Fed rate policies, inflation data, and flows into spot Bitcoin ETFs are key factors for crypto markets. DiPasquale highlighted $112,000 as initial support, with resistance between $120,000 and $125,000.
Brett Sifling of Gerber Kawasaki Wealth & Investment Management advised investors to watch for new regulatory developments, citing legislative efforts like the GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act in the U.S. government.
According to Brian Huang of Glider, there is growing movement from Bitcoin into other cryptocurrencies such as Ethereum and Solana, driven by ETF inflows and new digital asset treasuries. Huang stated that this could reduce Bitcoin’s market dominance if the trend continues.
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