Bitcoin Dips as Markets Brace for Powell’s Jackson Hole Speech – Is the Bull Run Pausing?

Bitcoin's rally hits a speed bump ahead of Powell's keynote—traders sweat the Fed's next move.

Powell's Shadow Looms Large

All eyes turn to Jackson Hole as Jerome Powell prepares to address inflation, rates, and the economic outlook. Crypto markets tense up—Bitcoin slips amid the uncertainty. No one wants nasty surprises from the Fed chair.

The Bull Pause—Temporary or Trend?

Traders debate whether this is a healthy pullback or the start of something deeper. Volatility spikes, leverage flushes, and weak hands fold. Classic pre-speech jitters—or something more?

Finance’s Favorite Theater

Jackson Hole: where central bankers deliver carefully worded nothingburgers that still move trillion-dollar markets. Because why make things simple when you can make them ‘nuanced’?

What’s Next?

If Powell hints at patience, Bitcoin could rebound fast. If he turns hawkish? Brace for impact. Either way—volatility’s back on the menu.

The Dip explained: Why Bitcoin fell below $113K

Profit-taking after recent highs

After a powerful summer run toward new highs, fast money trimmed risk ahead of a pivotal macro catalyst (Powell). Futures data show today’s low NEAR $112.8K before stabilizing, classic “sell the rumor” behavior into event risk.

$500M+ liquidations across derivatives

In the last 24 hours, >$500 million in crypto longs were liquidated as the drawdown accelerated-evidence that over-leveraged positioning amplified the move. (Source: CoinGlass, reported by Unchained.)

Traders hedging ahead of Fed news

The Jackson Hole symposium is a macro bellwether; Powell’s tone on growth and policy can reset risk appetite across assets, so crypto desks lightened up and added hedges into the event.

Powell at Jackson Hole: Why it matters for crypto

Market expectations of rate cuts or a dovish pivot

Recent Fed coverage highlights growing market hopes for cuts, especially around the theme of Fed rate cuts bitcoin correlation-but the speech is expected to be the defining macro event of the summer. A more hawkish-than-hoped message could pressure risk assets; a dovish lean could re-ignite momentum.

Potential impact on risk assets like Bitcoin

A firmer U.S. dollar into the event is a headwind for BTC in the short run; crypto rallies tend to breathe easier when the dollar softens. Today, a major dollar index ticked higher ahead of Powell.

Historical Jackson Hole precedents and crypto moves

While 1:1 causality is messy, prior Jackson Hole speeches that tilted hawkish have coincided with cross-asset risk-off days; the reverse is also true. Traders respect the event because forward-guidance shifts can Ripple through yields, liquidity, and sentiment, making it a key focus for Jackson Hole Powell speech crypto analysis.

Is this a pause or the start of a correction?

Bull case

• Rate-cut hopes resurface if Powell acknowledges softer growth risks.
• Spot Bitcoin ETF complex remains an institutional on-ramp; flows have been choppy in August, but the wrapper is sticky demand over a multi-month horizon, even as traders debate whether this dip marks a temporary pause or signals a broader Bitcoin correction in August 2025.

Bear case

• Macro uncertainty & stronger dollar into Jackson Hole. 
• Over-leveraged longs just got tagged; another wave is possible if $110K fails.
  

Technical levels to watch (spot/futures confluence)

• $110K: psychological round number + recent intraday wash area.
• $115K: near today’s bounce zone; reclaiming it flips short-term momentum neutral.
• $120K: first meaningful resistance; a daily close above suggests the dip was a shakeout.
  (Levels are for trading context, not advice.)
  

What traders are watching next

• Powell’s tone, UST yields, and the dollar index (DXY) over the next 24–48 hours for knee-jerk direction.
• Altcoin performance (ETH, XRP, SOL): high-beta coins typically magnify BTC’s move post-event.
• October ETF catalysts: The SEC just pushed back decisions on several crypto ETFs-including Solana (Oct 16) and XRP (Oct 19), clustering catalysts in October that could re-focus flows and volatility.

Quick, actionable playbook (not financial advice)

• Into the speech: Expect wider spreads + wicks. If trading, reduce leverage, size with caution, and pre-define invalidation levels.
• If dollar spikes on hawkish vibes: BTC can probe $110K; watch for liquidation cascades and funding resets as a potential fade setup, only if momentum stalls.
• If dollar fades on dovish hints: A swift reclaim of $115K–$120K opens room for a squeeze; monitor ETF flow prints in the following sessions for confirmation.
  

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