Bitcoin, the world’s largest cryptocurrency, has experienced a notable decline ahead of a widely anticipated speech by Federal Reserve Chair Jerome Powell at the annual Jackson Hole Economic Symposium. After reaching an all-time high last week, Bitcoin has fallen nearly 5% over the past seven days, now trading around $112,000. Ethereum, the second largest cryptocurrency, has also dropped, sliding 2% to $4,240.

This downturn aligns with a broader market cooling, as the total cryptocurrency market capitalization slipped by about 1% in the last 24 hours, touching $3.9 trillion. Traditional markets have shown similar caution, with the S&P 500 down 0.3% since Thursday’s opening.

Investor sentiment appears cautious as market participants await Powell’s remarks, looking for clues about the Federal Reserve’s next steps on interest rates. Many traders are skeptical that the Fed will announce a policy shift at Jackson Hole, fueling the uncertainty seen across digital assets. The possibility of a rate cut in September remains a critical focus, as such a move could influence capital flows from safer assets like U.S. Treasury bills into riskier markets, including crypto.

Since 1982, the Jackson Hole Symposium has served as an influential platform where central bankers outline potential shifts in monetary policy. With intense scrutiny on Powell’s speech, both crypto and stock markets are bracing for possible volatility, depending on whether or not the Fed signals a change in its approach to inflation and interest rates.

As traders hold their breath, the interplay between central bank policy and crypto market sentiment once again takes center stage, highlighting how macroeconomic signals continue to drive digital asset prices.