Bitcoin maintained trading above the $113,600 level as traders awaited Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday, an event that could set the market’s course heading into the fall.
The world’s largest cryptocurrency by market value rose about 1% on Thursday, recovering from a two-day decline earlier in the week. However, Bitcoin remains far below its record high of more than $124,000 set on August 14.
Ethereum (ETH-USD), the second-largest cryptocurrency, also posted gains of nearly 3%. Solana (SOL-USD) and Dogecoin (DOGE-GBP) led the rally among major tokens, jumping 4%, while Ripple (XRP-USD) and Tron (TRX-USD) moved more cautiously, rising 1.1% and 1.5%, respectively.
Investors will evaluate Powell’s speech at Jackson Hole as a potential market-moving event. 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 react sharply to every word spoken by the Fed chair at this event, as any signal of a more hawkish or dovish stance can ripple across currencies, bonds, equities, and cryptocurrencies.
For Bitcoin, a hawkish message underscoring inflation risks could pressure risk assets, potentially dragging the token back toward $110,000. A more dovish tone could revive hopes for a September rate cut, providing support for digital assets.
Although the causal link is not always direct, past Jackson Hole speeches that surprised markets have been followed by sharp moves across asset classes, making this year’s gathering closely watched by crypto traders.
Expectations for Two Rate Cuts Before Year-End
Rate traders are now pricing in two Federal Reserve rate cuts by the end of 2025, with the CME FedWatch tool signaling a 25-basis-point cut in September followed by another in December.
On the positive side, optimism remains that monetary easing will eventually arrive, while strong demand for spot Bitcoin exchange-traded funds (ETFs) continues to attract institutional inflows.
On the negative side, ongoing macro uncertainty and a strong US dollar ahead of Powell’s remarks could trigger another wave of liquidations if Bitcoin falls below $110,000.
Developments in Asset Tokenization
Beyond short-term trading dynamics, the digital asset sector is closely monitoring a major development in “asset tokenization.” SkyBridge Capital, founded by Anthony Scaramucci, announced plans to tokenize two of its hedge funds—Digital Macro Master Fund Ltd and Legion Strategies Ltd—in a move that could make investment products once reserved for the elite accessible to a broader audience.
The concept of tokenization refers to the process of converting ownership rights in assets—ranging from real estate and commodities to stocks and funds—into digital tokens recorded on the blockchain. This makes assets more liquid, easily divisible, and potentially accessible to a wider range of investors.
Ben Elvidge, Head of Commercial Applications at Trilitech and Product Director at Uranium.io, said: “SkyBridge’s move to tokenize $300 million worth of hedge funds represents a landmark in the evolution of tokenization. Wrapping multi-asset, complex strategies into on-chain instruments makes these exclusive funds more liquid and accessible.”
Elvidge added that institutional interest in tokenization is accelerating. Research from Trilitech shows that 90% of institutions are now familiar with the concept, and around 80% are either trading or planning to trade tokenized real-world assets. US firms, in particular, are showing strong demand, with 72% exploring the potential for tokenized commodities.
