Bitcoin price rises ahead of Fed Jackson Hole speech

Bitcoin (BTC-USD) held firm above $113,600 (£84,424) as traders looked ahead to Federal Reserve chair Jerome Powell’s address at the Jackson Hole Economic Symposium on Friday, an event that could set the tone for markets heading into the autumn.

The world’s largest cryptocurrency by market capitalisation rose around 1% on Thursday, rebounding from a two-day slump earlier in the week.

Still, bitcoin remains well below its recent record high of more than $124,000, reached on 14 August.

Ethereum (ETH-USD), the second-largest cryptocurrency, also posted gains of almost 3%.

Solana (SOL-USD) and dogecoin (DOGE-GBP) led advances among major tokens, jumping 4%. XRP (XRP-USD) and Tron (TRX-USD) traded more cautiously, edging higher by 1.1% and 1.5% respectively.

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Investors will assess Powell’s speech at Jackson Hole as a potential market mover. The annual symposium, hosted by the Federal Reserve Bank of Kansas City in Wyoming, brings together central bankers, policymakers, and economists to discuss long-term challenges facing the global economy.

Markets often hang on every word from the Fed chair at this event as signals of a more hawkish or dovish stance can ripple across currencies, bonds, equities, and cryptocurrencies.

CCC - CoinMarketCap•USD

(BTC-USD)

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113,473.84

-391.45

(-0.34%)

As of 9:12:00 AM UTC. Market Open. Advanced Chart

For bitcoin, a hawkish message emphasising inflation risks could pressure risk assets, potentially dragging the cryptocurrency back toward the $110,000 level. A more dovish tone, however, could revive hopes for an interest rate cut as soon as September, offering support for digital assets.

While causality is rarely straightforward, past Jackson Hole speeches that surprised markets have been followed by sharp moves across asset classes, making this year’s gathering a closely watched event for crypto traders.

Expectations for two rate cuts by the end of the year

Interest rate traders are now pricing in two rate cuts from the US Federal Reserve by the end of 2025. The CME FedWatch tool points to a 25 basis point cut in September followed by another in December.

On the bullish side, optimism remains that monetary easing will eventually arrive, while strong demand for spot bitcoin exchange-traded funds (ETFs) continues to drive institutional inflows.

On the bearish side, persistent macroeconomic uncertainty and a stronger US dollar ahead of Powell’s upcoming speech could trigger another wave of liquidations if bitcoin slips below $110,000.

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(IBIT)

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64.90

+0.71

+(1.11%)

At close: August 20 at 4:00:01 PM EDT Advanced Chart

Efforts to tokenise assets are developing

Beyond short-term trading dynamics, the digital asset space is also watching a major development in tokenisation. SkyBridge Capital, the investment firm founded by Anthony Scaramucci, announced plans to tokenise two of its hedge funds, the Digital Macro Master Fund Ltd and Legion Strategies Ltd, in a move that could bring traditionally exclusive investment products to a wider audience.

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(ETH-USD)

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4,268.52

+43.29

+(1.02%)

As of 9:12:00 AM UTC. Market Open. Advanced Chart

Tokenisation refers to the process of converting ownership rights in assets, from real estate and commodities to stocks and funds, into digital tokens recorded on a blockchain. This makes assets more liquid, easily divisible, and potentially more accessible to a broader set of investors.

“SkyBridge’s move to tokenise $300m in hedge funds is a major milestone in the evolution of tokenisation,” said Ben Elvidge, head of commercial applications at Trilitech and product lead at Uranium.io. “Packaging complex, multi-asset strategies into on-chain instruments makes these traditionally exclusive funds far more liquid and accessible.”

Elvidge added that institutional interest in tokenisation is accelerating. Research from Trilitech suggests that 90% of institutions are already familiar with the concept, and nearly 80% are either trading or planning to trade tokenised real-world assets. US firms, in particular, are showing strong demand, with 72% exploring tokenised commodities.

Read more:

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