Global crypto markets continued to fall on Friday ahead of a keynote speech by US Federal Reserve Chairman Jerome Powell at the annual Jackson Hole symposium. Bitcoin fell below $113,000, while major altcoins such as SOL and XRP also followed suit. Uncertainty over US monetary policy has heightened investor concerns, with many worried that Powell’s hawkish tone will dampen the prospect of a September interest rate cut.
This year’s Jackson Hole symposium is in the spotlight as it could provide clues on the direction of Fed policy. While interest rates have been left unchanged for five straight meetings, investors are waiting to see whether Powell will signal a shift from an average inflation targeting policy to the traditional 2% inflation target. Analysts say that if Powell strikes a cautious tone and rules out a rate cut, it could trigger a sell-off in crypto and broader financial markets.
In addition, Powell's speech this time is considered historic as it is likely to be his last speech in Jackson Hole before the end of his term in May 2026. His relationship with President Donald Trump is also seen as quite tense, as Trump wants an immediate rate cut this year. This difference in views adds to the uncertainty in the market, with traders waiting to see whether Powell will focus on the labor market slowdown, long-term strategy, or simply emphasize inflation.
At this point, market sentiment is very negative, with data showing the probability of a rate cut in September is decreasing in the CME FedWatch Tool and Polymarket. Analysts point out that any dovish signal could be a catalyst for a resurgence in prices, but that scenario is considered unlikely. Investors are now urged to be cautious as Powell's speech is expected to trigger sharp fluctuations in crypto, crypto stocks, and global financial markets.
