Bitcoin’s price has dropped to $112,565, marking its lowest level in two weeks. This decline comes as investors prepare for Federal Reserve Chairman Jerome Powell’s address at the annual economic symposium in Jackson Hole.
Impact of Macroeconomic Factors on the Cryptocurrency Market
The drop in Bitcoin's price below $113,000 reflects growing market nervousness ahead of Powell’s speech. Ryan Lee, chief analyst at Bitget exchange, described the price movement as rising market nerves due to macroeconomic tensions surrounding the upcoming Fed meeting.
Consequences of Potential Rate Changes
Expectations for a September interest rate cut fell to 82%, down from over 94% the previous week. This decline followed Consumer Price Index data showing a year-over-year rise of 2.7%, above the Fed's 2% target.
Current Trends in the Cryptocurrency Market
Despite market volatility, trends indicate a strong corporate accumulation of Bitcoin. By August, at least 297 public entities held Bitcoin, controlling 3.67 million BTC, over 17% of total supply. This divergence between institutional accumulation and retail nervousness highlights different investment horizons.
The cryptocurrency market continues to face pressure due to uncertainty around Fed policy, which significantly influences digital asset prices. The outcome of Jerome Powell's speech will likely affect Bitcoin's support levels and broader market outlook.
