Bitcoin price falls below $113,000 as investors anticipate Powell speech.

Bitcoin faced a significant decline, hitting a low of $112,565, showcasing apprehension among investors in anticipation of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole conference.

The market appears volatile as investors eagerly await Powell’s speech for insights into the Federal Reserve’s interest rate policies for the rest of the year. Speculators observe Bitcoin’s recent price slump as a response to the escalated uncertainty regarding U.S. monetary policy decisions.

Bitget exchange’s chief analyst, Ryan Lee, expressed concern over the drop below $113,000, referring to it as a sign of increasing anxiety and fear among traders. Lee noted the importance of letting market narratives and liquidity stabilize before anticipating a potential recovery. He believes that if the $112,000 support level remains intact until Powell’s speech, it might signal the start of the next bullish cycle instead of a reset.

The latest U.S. inflation data revealed a 2.7% year-over-year increase, surpassing the Fed’s targeted 2% threshold and prompting a shift in investor expectations about a 2025 interest rate cut. CME Group’s FedWatch tool data indicated a decline in the probability of a rate cut from over 94% to 82% following the release of the consumer price index.

André Dragosch, head of European research at Bitwise, speculated that an initial rate cut could prolong Bitcoin’s upward trajectory, potentially extending the rally until the year-end.

While retail investors proceed cautiously, corporate entities are ramping up their Bitcoin holdings. The number of public entities holding Bitcoin has surged to over 297, up from 124 in June, reflecting a growing trend of institutional interest.

This group comprises 169 public firms, 57 private companies, 44 investment funds, or ETFs, as well as 12 governments, collectively amassing 3.67 million BTC, equivalent to more than 17% of the total Bitcoin supply. This sustained corporate accumulation highlights a significant shift in the market dynamics as institutional players increasingly recognize and adopt Bitcoin as a store of value and investment option.