Bitcoin fell 1.6% to around $112,300 after Cleveland Federal Reserve President Beth Hammack said she would not support lowering interest rates “if the meeting was tomorrow”.
Speaking at the Fed’s annual Jackson Hole symposium, Hammack stressed, “We have inflation that’s too high and has been trending upwards over the past year”.
Her remarks came just days before Fed Chair Jerome Powell is set to deliver his closely watched keynote, with traders now scaling back expectations for a September rate cut from over 92% to roughly 73%.
Crypto market reaction Jackson Hole
The comments triggered a broad sell‑off in crypto. Ethereum dropped 2.6% to $4,230, while Solana and XRP fell 3.5% and 3.4% respectively.
Analysts say the market is on edge ahead of Powell’s speech, with Bitwise strategist Juan Leon warning it could be “cautiously hawkish,” creating headwinds for risk assets.
According to CoinGlass data, over $500 million in leveraged crypto positions were liquidated in the past 24 hours as traders unwound risky bets. Support for BTC is seen near $110K–$112K, with resistance around $115K–$120K.
This price action the past two week correlates nearly identically to the Polymarket odds of a September rate cut.
A 25 bps cut is what the market wants.
After going from $124k to $112k in two weeks, this scenario is significantly de-risked. Keep buying Bitcoin for a 10%… pic.twitter.com/RyvGwWyPBN
— FinancialFreedom (@FinFreedom414) August 22, 2025
inflation vs employment debate
Hammack argued the Fed should keep its focus on inflation rather than employment concerns, noting unemployment remains stable at 4.2%. She also cautioned that recent job growth revisions may not accurately reflect labor market strength, and that the full impact of tariffs on prices may not be felt until next year..
Traders eye Powell speech
Market watchers say Powell’s final Jackson Hole address before his term ends in 2026 could set the tone for the rest of the year. As Ryan Lee of Bitget put it, the drop below $113K shows “rising nerves in the market”. A dovish tone could spark a relief rally, while a hawkish stance may deepen the pullback.
