Market Awaits Powell's Speech as Bitcoin Remains Below $113K

By Shaurya Malwa (All times ET unless indicated otherwise) The price of Bitcoin is hovering around $113,000 after failing to break through the $115,000 barrier. This is a significant drop from its previous highs, where the cryptocurrency was expected to reach $135,000. The CoinDesk 20 Index, a benchmark for the largest digital assets, has decreased by 0.46% to 3,996, after opening above 4,012, and touched a low of 3,957. The market is currently waiting for Federal Reserve Chairman Jerome Powell's speech at Jackson Hole, which is expected to either calm or shake the market. Bitcoin funds have seen a significant outflow of over $1 billion in just a few days, according to SoSoValue data. Ether ETFs have also lost around half a billion dollars this week, despite seeing net inflows the previous day. Other cryptocurrencies such as Ether, XRP, and Solana are also experiencing a similar trend, with none of them showing significant growth or decline. The options market is pricing in a potential 2% swing around Powell's speech, which could go either way. The outcome of the speech will be crucial, as it may determine the direction of the market. If Powell hints at rate cuts, risk assets, including cryptocurrencies, may experience a bounce. However, if he remains cautious, the pullback could deepen, potentially pushing Bitcoin towards the $108,000 support level. While there is still bullish sentiment in the long term, with some predictions suggesting that Bitcoin could reach $200,000, the current focus is on Powell's speech and its potential impact on the market.