Bitcoin Deflates After Record High as Cryptos Drop Up to 5.7%
While short-term volatility remains high, institutional adoption and more sophisticated corporate strategies continue to provide support.
Quick overview
- Bitcoin is experiencing a pullback from its recent all-time high, currently down 1.1% to $116,258 amid investor caution.
- The upcoming Jackson Hole symposium is a key focus, with traders looking for insights on U.S. interest rate policies from Fed Chair Jerome Powell.
- Other cryptocurrencies, including Avalanche, Toncoin, and Dogecoin, are also seeing declines, reflecting broader market pressures.
- Geopolitical tensions, particularly regarding Ukraine, are adding further uncertainty to the markets.
The world’s largest cryptocurrency is retreating from last week’s all-time high, as investor caution over the Jackson Hole symposium and mounting geopolitical tensions add pressure to markets.
By late Monday, August 18, Bitcoin was down 1.1% to $116,258, according to Binance, after briefly touching $124,500 last week. The pullback reflects the influence of shifting macroeconomic signals, with traders weighing both global risks and the Federal Reserve’s next policy moves.
Other major tokens also traded lower, with Avalanche (-5.7%), Toncoin (-5.6%), and Dogecoin (-5.1%) leading declines. Ethereum slipped 3.6% over the past 24 hours to $4,320.
Key Focus: Jackson Hole
The annual central banking symposium hosted by the Kansas City Fed will run from August 21–23, with Fed Chair Jerome Powell’s remarks in the spotlight as markets seek clues on the next steps for U.S. interest rates.
Recent U.S. economic data tempered expectations of an aggressive cut in September. Traders now anticipate a 25-basis-point reduction, down from earlier bets on a 50-point move.
Analysts note that while short-term volatility remains high, institutional adoption and more sophisticated corporate strategies continue to provide structural support for Bitcoin and digital assets.
Geopolitical Tensions Add Pressure
Markets are also monitoring geopolitical developments. On Friday, Donald Trump met with Vladimir Putin but failed to reach a ceasefire in Ukraine. On Monday, U.S. President Joe Biden will meet with Ukrainian President Volodymyr Zelensky and several European leaders in a renewed diplomatic push.
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