Bitcoin slipped below $113,000 this week, briefly touching $112,565, its lowest point since early August. That drop set off alarms across crypto markets. It comes just as Federal Reserve Chair Jerome Powell is set to deliver a very very important speech at the central bank’s Jackson Hole gathering. So, is Powell really the reason Bitcoin is wobbling right now? The short answer is yes, but it’s not just Powell alone.
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The reality is that Bitcoin no longer trades in its own bubble. Over the years, it has become increasingly tied to the same macroeconomic forces that drive stocks, bonds, and currencies. This means that when the Fed hints at raising or cutting rates, Bitcoin often reacts in lockstep with other risk assets.
Inflation Data Shakes Confidence
One of the big reasons behind the wobble is new inflation data. Consumer prices rose 2.7% year-over-year in July, still well above the Fed’s 2% comfort zone. That might not sound huge, but for central bankers it’s a red flag. Just last week, markets were pricing in a September rate cut with more than 94% certainty. After the inflation release, those odds slipped closer to 82%, according to the CME FedWatch tool.
For Bitcoin, this is important because liquidity is its lifeblood. Rate cuts pump more money into the system, and some of that money often finds its way into crypto. If rate cuts look less likely, traders get nervous. That’s exactly what’s playing out now.
Bitcoin’s Support Levels Hold the Line
Still, Bitcoin hasn’t completely unraveled. The $112,000 mark has turned into the line everyone’s watching. If Bitcoin can cling on there until Powell talks, traders think it has a shot at snapping back. If it slips under, though, that’s when the nervous selling could snowball.
This is classic crypto psychology. Everyone knows support levels aren’t life-changing, but they influence behavior. Right now, the question isn’t just “What will Powell say?” but also “Can Bitcoin hold the floor long enough to buy time for buyers to return?”
Why Does Powell’s Speech Matter So Much?
So why does one speech matter this much? Because Powell isn’t just addressing economists in Wyoming, he’s communicating the Fed’s priorities to the entire global market. If he focuses on inflation, rate cuts could be delayed, which keeps pressure on Bitcoin. If he acknowledges weakening jobs data and hints at cuts, traders may see it as a green flag to re-enter.
The repercussions could be huge because markets want clarity. Powell’s tone could shift Bitcoin’s short-term trajectory from a dip to a rebound, or even deepen the slide.
Corporations Keep Buying in the Background
The interesting thing is that while traders stress over every Powell headline, corporations keep quietly building their Bitcoin reserves. Nearly 300 public and private entities now hold more than 3.6 million BTC, about 17% of supply. That’s a powerful reminder that, behind the noise of short-term dips, long-term adoption is still climbing.
This steady accumulation suggests that while Powell’s speech might shake markets in the short run, the broader Bitcoin story isn’t going away. Institutions are treating these dips less as disasters and more as opportunities.
So, Why Is Bitcoin Wobbling?
To answer the headline’s question directly, Bitcoin is wobbling because investors are nervous about Powell’s Jackson Hole speech, nervous about inflation, and nervous about whether September brings rate cuts or delays. It’s a cocktail of macro uncertainty that crypto has learned it can’t ignore.
But the bigger takeaway is that Bitcoin’s fate isn’t sealed by one speech. Yes, Powell could rattle the market. But corporate accumulation, long-term adoption, and the eventual path of interest rates will likely matter more than one week’s volatility.
In other words, Bitcoin is wobbling, but the foundations underneath are still there, waiting for clarity, waiting for liquidity, and waiting for the next big move.
At the time of writing, Bitcoin is sitting at $113,588.52.
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