Emre Yumlu 
Bitcoin fell below $113,000 as investors turned their attention to Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech. This crucial announcement could provide key signals on how the Fed will approach interest rate cuts in the coming months.
Rising Market Tensions
On Wednesday, data showed that Bitcoin briefly dipped to $112,565, marking its lowest point since August 3.
Ryan Lee, chief analyst at Bitget, said the decline reflects “rising nerves in the market.” According to Lee, the macroeconomic uncertainty surrounding Powell’s speech has triggered “fear spikes” among crypto traders. However, he noted that if the $112,000 support holds, it may not signal a reset but rather set the stage for the next leg of the bull run.
Inflation and Rate Cut Expectations
On August 12, the U.S. Consumer Price Index (CPI) showed a 2.7% year-over-year increase. While unchanged from June, the figure remains above the Fed’s 2% target.
Following this, expectations for a September rate cut decreased. According to CME Group’s FedWatch tool, the probability dropped to 82%, down from 94% a week earlier.
André Dragosch, Head of European Research at Bitwise, emphasized that potential Fed cuts in 2025 could be a major catalyst for the markets. He argued that lower rates would boost U.S. money supply and strongly support Bitcoin’s rally at least until the end of the year.
Corporations Keep Accumulating Bitcoin
Despite weaker sentiment among retail traders, institutional players continue to accumulate Bitcoin.
The number of entities holding Bitcoin has surged from 124 in early June to 297. This includes 169 public companies, 57 private firms, 44 investment funds, and 12 governments. Together, they now hold 3.67 million BTC — representing more than 17% of the total supply.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.