Crypto Bleeds Ahead of Powell’s Jackson Hole Speech – Eight Reasons WHY Traders Are Nervous

Bitcoin Droped 3.2% in the Past 24 Hours to Slip Below $ 114,000, While Ether Fell 5.3% to Under $ 4.200. XRP Tumbled 6.2%, Cardano’s Ada Slid 8%and The Broader Crypto Market Was Down 3.2%.

Shares of Crypto-Related Companies, Such As Bitcoin Mines, Crypto Exchanges and Digital Asset Treasury FIRMS 5.8% and 7.4%, respectively.

By Contrast, in General, US Equities Suffired Less: The Dow Ended Flat, The S&P 500 Fell 0.59%, and The Nasdaq Slid About 1.5%. The Disparity Underscores How Digital Assets, WHICH RELY HEAVILY ON CHEAP LIQUidity, Are More Exposed to Shifts in Rate Expectations than Traditional Stocks.

Investors Now Face A Pivotal Macro Catalyst-Heavy Week.

On aug. 20 AT 2 PM ET, The Fed Will Release Minutes from the Fomc Meeting Held July 29–30, Offering Insight Into Policymakers’ Tariff and Inflation Debates. From aug. 21–23, Central Bankers Gather for the Jackson Hole Symposium, With Powell’s Keynote Set for Aug. 22 at 10 am et. Together, The Minutes and Powell’s Speech Could Define Market Expectations for the September Policy Meeting.

HERE ARE SOME TOP Macro Highlights Traders Will Likely Watch This Week to Gauge How The Fed Will React Durying Next Month’s Meeting.

Tariffs’ delayed biteMany companies have Absorbed Tariff Costs to Protect Market Share, But Analysts Warn they cannot do so indefinitely. OnCo passed on to consumers, Tese costs could Drive Prices Higher and Force the Fed to Wait Before Cutting.

Sticky Inflation DataDespite Some Cooling, Inflation Gauges Remain Elevated. The Producer Price Index, A Key Wholesale Measure, Has Been Hotter Than Whon Forecast, Suggesting Persent Pressures that Complicate Any Case for Aggressive EASING.

Corporate limitsUS Executives Have Signved they will be forced to Shift Tariff Costs Downstream. If that happles, consumer inflation could accelerate in the coming months, Making a september Cut Seem Premature.

Mixed Economic SignalsThe US Economy Shows Both Slowing Job Growth and Resilient Consumer Demand. This Uneven Picture Could encouroge Powell to argue for pationing unil the fed has Cleerr Evidence that Growth Can Withstand Tariff-Driven Costs.

Policy UncertaintyTariffs Intersect with Fiscal and Trade Policies in Unpredictable Ways. That complexity increases the Risk of Missteps, Making A Hawkish Tone at Jackson Hole More Likely.

Lessons from HistoryThe Tariff Shocks of 2018–2019 Produced Delayed But Meaningful Inflation, Prompting Fed Caution. Powell May Draw on that precedent to justify Holding Back This Time.

Forward-Looking IndicatorsThe UpComing Release of Fresh Economic Data, Including Thursday’s Release of Preliminal August Data on Manupacting and Services Activity, Could Show Tariff-Related Cost Powell Could Point to Tese As Another Reason for Prudence.

International DivisionsMinutes from the july fomc meting May Reveal a Split Inside the Fed. With hawks focused on Inflation and doves Emphasizing Jobs, Powell May Stress the Need for Consensus, WHICH OFFEN FAVORS Waiting.

For Crypto, The Stakes Are Clear. Higher-Foror-Longer Rates Curb The Liquidity that Fuels Special Rallies, Raising Financing Costs for Mines and Weighting on Exchange Activity. If Powell Signals Caution, The Sell-Off In Tokens and Crypto-Linked Equities Could DeEpen. A dovish surprise, However, Might Offer the Spark for a Rebound.