Crypto Market Pauses Ahead of Powell Speech as Bitcoin Holds Above $113K

Cryptocurrency markets remained largely flat Thursday as investors positioned themselves ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech at Jackson Hole. Traders are weighing whether Powell will lean hawkish — potentially pressuring bitcoin — or signal a dovish pivot that could breathe new life into risk assets.

Bitcoin (BTC) hovered near $113,600 after a modest rebound, holding steady despite recent selling pressure. The market is watching closely for any indication that the Fed might endorse rate cuts as early as September.

Among major tokens, Solana (SOL) and Dogecoin (DOGE) led gains, each climbing about 4%. Other large-cap assets — including XRP, Binance’s BNB, Ethereum (ETH), and Tron’s TRX — saw more subdued advances in the 1%–3% range.

Although softening labor data has fueled rate-cut optimism, persistent inflation tied to trade tariffs continues to complicate the Fed’s path forward.

“The Fed faces a difficult balancing act — cut too soon and risk reigniting inflation, wait too long and growth risks deepen,” said Nick Ruck, director at LVRG Research, in a note to CoinDesk.

Investor sentiment has taken a notable hit. The Crypto Fear & Greed Index dropped to 44 — its lowest level in nearly two months — after reading 75 less than a week ago. The pullback mirrors recent bitcoin price action, which briefly dipped to $112,500 earlier in the week before rebounding near monthly lows.

Technical analysts warn that a clean break below $108,000 could open the door to a deeper correction toward the $100,000 mark.

“Bitcoin found temporary support around early-August lows after dipping to $112,500,” said Alex Kuptsikevich, chief market analyst at FxPro. “However, the decline below the 50-day moving average the day before triggered increased selling — a bearish signal.”

“All eyes are now on the $108,000 level. If that fails to hold, the path to $100,000 becomes more likely,” he added.

Kuptsikevich also noted that crypto markets have started losing momentum ahead of tech equities like the Nasdaq 100, reinforcing the sector’s sensitivity to broader investor sentiment shifts.

On-chain indicators point to growing vulnerability. According to CryptoQuant, short-term bitcoin holders are realizing losses for the first time since January — a pattern often seen before deeper drawdowns.

Meanwhile, Santiment data highlighted a decline in trading volumes compared to July, despite new price highs earlier this month. A rise in retail activity alongside fading liquidity is raising red flags.

Some analysts believe the recent BTC rally may be more about macro conditions than renewed bullish conviction.

“Bitcoin’s latest highs may reflect dollar weakness more than genuine value appreciation,” Presto Research wrote in a note earlier this week. “Adjusted for currency depreciation, BTC still lags behind its 2021 peak and post-2024 election levels.”

As Powell’s Jackson Hole address looms, markets are bracing for heightened volatility. A dovish message could ignite relief rallies across crypto, while any reluctance to lower rates may accelerate bitcoin’s path toward the critical $100,000 level.