Bitcoin drops 8% in August to $113K as markets await Powell’s Jackson Hole speech

Bitcoin has gone down by nearly 8% and was recorded at $112,932 on Friday after hitting an all-time high of $124,000 last Wednesday, to which analysts say that it reflects the modest pullback from its recent peak and the investors are waiting for Fed Chair Powell’s Jackson Hole speech.

“On the macro front, Cleveland Fed President Beth Hammack reinforced a hawkish stance—stating inflation is still too high and opposing a rate cut—causing crypto prices to slide ahead of anticipated remarks from Fed Chair Powell at Jackson Hole. Yet, amid macro cautiousness, institutional interest remains evident: family offices in Hong Kong and Singapore are increasingly adopting Bitcoin as a portfolio diversifier, with trading volumes on HashKey up 85% YoY and South Korean exchange volumes rising over 20%,” said CoinSwitch Markets Desk.

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At 10:28 AM IST, Bitcoin was trading at $112,746, down marginally by 0.94% over the past 24 hours and down nearly 5.21% over the past week. Ethereum, on the other hand, was trading at $4,279, down by 0.44% in the past 24 hours but down 7.54% over the last seven days.

According to CoinMarketCap data, the crypto sector’s overall market capitalisation stood at around $3.84 trillion on Friday.

Another analyst says that Bitcoin is trading range-bound as investors wait for Federal Reserve Chair Jerome Powell’s speech at Jackson Hole and a dovish tone in the speech could trigger a relief rally whereas a hawkish stance on the rate cut could put more pressure on BTC.

“While BTC shows strong resilience despite the concerns from recent US unemployment data, bulls are required to defend the $110,000 to $112,000 range to avoid further weakness. Currently trading at $113,200, a weekly close above $114,000 could give control back to the bulls, positioning Bitcoin for potential upside,” said Edul Patel, Co-founder and CEO of Mudrex.

CoinSwitch Markets Desk further adds that Ethereum trades near $4,280, down slightly intraday but outperforming BTC with a 2–3% gain over the last 24 hours and ETF flows suggest a cautious rotation: Fidelity’s Ethereum fund saw a $8.6M inflow, while the Bitcoin fund faced a $7.5M outflow, signaling a subtle shift toward ETH amid mixed sentiment.

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Market perspective

Vikram Subburaj, CEO, Giottus.com

Bitcoin is testing the $113K support and risks sliding to $110K as traders recalibrate after indications of no rate cut in September. With US Fed chair Jerome Powell’s comments due later today, markets look braced for tighter policy until inflation convincingly eases. That makes risk-on assets vulnerable to more volatility.

Next week’s $13.8B options expiry adds further pressure, with bears incentivised to cap BTC below $114K after last week’s 9.7% drop to six-week lows. Most bullish positions sit between $115K and $120K. These levels look remote unless Bitcoin clears $116K swiftly. Altcoins reflected the caution: Ethereum and Tron held flat; while BNB, XRP, Solana, and Hyperliquid lagged.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)