Bitcoin Dips to $112K – Investors Sweat as Powell Prepares to Speak (Again)

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Well, it’s that time again. Cryptocurrency investors are nervously clutching their digital wallets as they await the US Federal Reserve’s annual gathering in Jackson Hole this Friday. No, it’s not some obscure mountain resort for crypto nerds, it’s where Chairman Jerome Powell is expected to make life-altering, market-shattering remarks about interest rates. Or, you know, something like that.

On Wednesday, Bitcoin (BTC) decided to take a little dip to $112,565, briefly flirting with a two-week low last seen on August 3. Because who doesn’t love a good rollercoaster ride in the world of crypto? (Note: sarcasm included for your convenience.)

Apparently, Bitcoin’s fall below $113,000 is a signal of “rising nerves” in the market. Yes, you read that right-market nerves. It seems that Powell’s impending speech is sending “fear spikes” through the digital asset world, with traders practically shaking in their boots (which, we assume, are very expensive boots). Ryan Lee, chief analyst at Bitget exchange, was kind enough to drop some knowledge, suggesting that if the $112,000 support level holds, this could set up Bitcoin for its next “bull run” instead of a full-on reset. “Letting the narratives settle” is apparently the cure for this chaos. In case you were wondering, we still don’t know what that actually means.

Corporations Keep Hoarding Bitcoin, Because Why Not?

Oh, but wait, it gets even more entertaining! While retail investors are pacing back and forth, staring at their screens with trembling hands, corporations are out here stockpiling Bitcoin like it’s the latest must-have gadget. As of August 12, corporate Bitcoin acquisition is officially a thing. Investor panic over potential interest rate cuts got a nice little boost after the US Consumer Price Index (CPI) showed a 2.7% increase in consumer prices year-over-year. Still, not quite the end of the world… but definitely enough to make people start adjusting their portfolios.

After the CPI news hit, expectations for an interest rate cut plummeted by a whopping 12%, with the odds now sitting at 82%-down from over 94% a week earlier. No, this is not a typo. The numbers are real. And no, you can’t blame your bad luck on the weather.

Now, let’s talk about the mystical, magical interest rate cuts that might just be the thing to keep Bitcoin’s bull run going. If Powell does the unthinkable and cuts rates, expect fireworks. And by fireworks, we mean an accelerating money supply and a possible uptick in Bitcoin’s price until the end of the year. According to André Dragosch, head of European research at Bitwise, these rate cuts could make Bitcoin “rally” so hard, it’ll be almost unrecognizable by 2026. Or, at least, that’s the hope.

Meanwhile, retail investors may be nervous, but large corporations are doing what they do best: acquiring as much Bitcoin as possible. Over 297 public entities are now holding Bitcoin, up from just 124 in June. So, that’s 169 public firms, 57 private firms, 44 investment and exchange-traded funds, and 12 governments all in on this digital gold rush. Combined, they’re sitting on 3.67 million BTC, or more than 17% of the total supply. Because, you know, that seems like a healthy level of corporate Bitcoin hoarding.

For those of you still managing to stay awake, here’s a fun fact: these 297 entities aren’t just collecting Bitcoin for fun. They’re doing it because they believe the crypto world is about to get a lot more interesting, or at least a little more profitable. Buckle up, folks, this ride isn’t over yet.

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2025-08-20 15:56