🔴Following Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on August 22, Bitcoin jumped 5% on expectations of a September rate cut. However, by August 25, those gains had fully faded. Despite markets pricing in an 87% chance of a rate cut, BTC pulled back to $112,771, with investor enthusiasm notably weakened.
🔴The main driver of the decline was capital rotation by large players into Ethereum, which triggered selling and a flash crash. The hype surrounding Powell’s comments added fuel, with surging mentions of the Fed and interest rates on social media indicating local overheating. Low liquidity further exacerbated the move, preventing momentum from holding. In the near term, Bitcoin will likely remain in a sideways range as investors continue reallocating assets.
