Friday, cryptocurrency investors are preparing for the annual collection of the American federal reserve in Jackson Hole, where the remarks of President Jerome Powell could provide key signals on the interest rate policy before the meeting of the Federal Committee of the Free Market in September.
Bitcoin (BTC) fell briefly at $ 112,565 on Wednesday, a two -week low on August 3, according to Cointelegraph data.
The drop in bitcoin below $ 113,000 is an instantaneous “growing nerves on the market” because macroeconomic tensions surrounding Powell’s speech cause “fear peaks” among digital asset traders, according to Ryan Lee, Bitget Exchange chief analyst.
“Now letting the stories settle down and the return of liquidity could open the way to a rebound,” said the analyst at Cointelegraph, adding that if the level of support of $ 112,000 is held to the speech, he can provide the “configuration of the next stage of the bull rather than a reset”.
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Companies continue to accumulate bitcoin
The concerns of investors concerning a delay in lowering potential interest rates were exacerbated on August 12, after the Consumer Price Index in the United States (IPC) showed that consumer prices increased by an annual sliding, which remained unchanged from June, but well above the 2% target of the Fed.
After ICC news, expectations of a drop in interest rate dropped by more than 12%, to 82% on Wednesday, against more than 94% a week ago, according to the latest Fedwatch tool estimates from the CME group.
The first decrease in interest rates of 2025 can become a large market catalyst, triggering expectations of two or three total interest rate reductions before the end of the year, according to André Dragosch, head of European research at Crypto Asset Manager.
“As you see other rate drops by the Fed, the curve will be steep, which implies even more acceleration and growth of the American money supply,” Dragosch told Cointelegraph, adding that rate drops can be the more important macro development to “support” the continuation of the Bitcoin rally “at least until the end of the year.”
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Despite an important change in feeling among retail investors, companies continue to acquire the two main cryptocurrencies in the world.
More than 297 public entities now hold Bitcoin, against 124 early June.
These include 169 public companies, 57 private companies, 44 investment and stock market funds and 12 governments which increased 3.67 million BTCs, which represents more than 17% of the total supply, according to Bitcointreasure.net.
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