Bitcoin Dips Below $113K as Traders Await Powell’s Jackson Hole Speech

Bitcoin faced renewed selling pressure on Thursday, briefly falling below $113,000 before stabilizing, as global markets brace for U.S. Federal Reserve Chair Jerome Powell’s high-profile speech at the Jackson Hole Economic Symposium.

The retreat comes amid heightened volatility, surging liquidations, and a stronger U.S. dollar, raising the critical question: is this simply a healthy bull-market pause, or the beginning of a deeper correction in August 2025?

Why Bitcoin Fell Below $113K

The decline reflects a combination of profit-taking and risk management ahead of Powell’s remarks. After rallying to fresh highs this summer, traders locked in gains while derivatives data revealed over $500 million in liquidations in the past 24 hours.

Much of this came from over-leveraged long positions, amplifying the downside move. Bitcoin briefly touched lows of $112,800 before bouncing, a move traders described as “sell the rumor” behavior typical before major macroeconomic events.

Another factor weighing on Bitcoin is the renewed strength of the U.S. dollar. The dollar index ticked higher as investors sought safety, a development that historically pressures Bitcoin in the short term. With investors trimming exposure, hedging activity has intensified across crypto markets.

Powell’s Jackson Hole Speech: Why It Matters for Crypto

The Jackson Hole symposium is a defining event for financial markets, often setting the tone for global risk appetite. Powell’s comments on interest rates, inflation, and growth could prove pivotal for Bitcoin and other cryptocurrencies.

If Powell leans dovish, signaling openness to rate cuts, risk assets like Bitcoin could regain momentum and potentially reclaim key resistance zones at $115K and $120K. However, a hawkish tilt, emphasizing inflation control and tighter policy, could weigh heavily on Bitcoin, with a deeper test of the $110K psychological support on the table.

Historical precedents reinforce the event’s importance. Past Jackson Hole speeches have triggered sharp moves across equities, bonds, and crypto, underscoring how sensitive Bitcoin is to shifts in Fed forward guidance.

Bitcoin Outlook: Pause or Correction?

The bull case rests on optimism that Powell will acknowledge slower growth, reviving rate-cut hopes that could re-energize Bitcoin demand. Institutional flows via spot Bitcoin ETFs, though choppy in August, remain a structural driver of adoption.

The bear case highlights macro uncertainty and the risk of cascading liquidations if $110K fails to hold. Traders are closely monitoring U.S. Treasury yields, the dollar index, and altcoin performance in the coming days for direction.

For now, Bitcoin’s fate hinges on Powell’s words at Jackson Hole. Whether this dip is a temporary pause or the start of a broader correction may soon become clear.