Bitcoin and Altcoins Slide as Powell’s Jackson Hole Speech Looms

Waning hopes for a September rate cut have triggered profit-taking, liquidations, and broader caution across risk assets.

Bitcoin Nears 6-Week Low

Bitcoin fell below $113,000 on Wednesday, approaching its lowest levels in six weeks. The downturn began after hotter-than-expected U.S. macro data last week dented optimism around monetary easing. Profit-taking at record highs earlier this month has now turned into sustained selling pressure.

Kronos Research CIO Vincent Liu told The Block that Bitcoin’s correction is being fueled by leveraged liquidations and a retreat from risky positions. He expects price consolidation in the near term as traders wait for clearer policy direction from the Fed.

Ethereum Holds Critical Support

Ethereum also faces a decisive moment. Analysts highlight $4,200 as a critical support level; a breakdown could see ETH slide toward $3,900. For now, buyers are attempting to defend this zone, but the broader market tone remains fragile.

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XRP and Cardano are among other major altcoins seeing steep declines, mirroring Bitcoin’s losses and reflecting investor unease ahead of Friday’s policy update.

Spotlight on Powell’s Jackson Hole Speech

The central focus is Fed Chair Jerome Powell’s upcoming remarks at the Jackson Hole symposium. Investors are eager for clues about the September meeting, with markets currently split on whether the Fed will move toward easing or maintain a hawkish tone.

Peter Chung, head of research at Presto Research, noted that Powell’s comments could set the immediate direction for crypto. “If Powell delivers a more moderate stance than expected, the market could recover. But anything signaling resistance to rate cuts could spark another sharp correction,” he said.

Wait-and-See Mode

For now, traders appear to be in limbo. Short-term volatility is likely, with Bitcoin stuck under pressure and Ethereum battling to hold its floor. The outcome of Powell’s speech could determine whether the market stages a rebound or slides further into correction territory.

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