Here’s Why Jerome Powell’s Jackson Hole Speech Could Make or Mar Crypto Market

• Jerome Powell’s Jackson Hole speech is scheduled for 4 PM CET, is set to draw global market focus.
• Market traders are pricing in a 70%–85% chance of a September interest rate cut.
• Crypto traders warned of 7%–15% downside risk if no cuts are signaled following the speech.

Federal Reserve Chair Jerome Powell is to deliver his Jackson Hole speech at 4:00 PM CET.

Traders across global markets looked to the address for signals on interest rate cuts, inflation, and monetary policy.

Notably, both equities and digital assets are bracing for sharp movements in the aftermath of the speech.

Jerome Powell Faces Divided Economic Picture

In a major development, Jerome Powell, the Chairman of the United States Federal Reserve, is due to deliver his last Jackson Hole speech at 4:00 PM CET.

The speech is coming at a critical moment, with the economy showing mixed signals. Inflation figures is likely to shift, while the job market showed signs of weakness.

It is important to add that political pressure also added to the challenge.

President Donald Trump had urged Jerome Powell to cut interest rates, but recent inflation data suggested caution.

Futures markets showed investors were betting on a possible cut in September. Optimistic estimates placed the chance of a small cut between 70% and 85%.

Some market observers noted that a rate cut might have lifted stocks and crypto, but a tougher stance on inflation could have pushed prices lower.

Traders noted that Powell’s past Jackson Hole speeches often moved markets sharply.

In earlier years, Treasury yields and the dollar went up, while the S&P 500 dropped. This made many expect fresh swings this time too.

Investors across stocks, bonds, and digital assets are prepared for sudden moves depending on his message.

Crypto Traders Watched for Policy Hints at Jackson Hole

The crypto market closely followed the buildup to Jerome Powell’s Jackson Hole Speech remarks. Bitcoin and Ethereum were at the centre of attention.

Traders noted that a hint of easier conditions could bring rallies, while a stronger focus on inflation could drag prices down sharply.

Commentary shared by market analysts such as CryptoJelleNL captured the mood of caution.

In his post on X, he pointed out that the odds of a September cut could shift depending on Powell’s tone.

According to his assessment, the hours around the New York market open and the speech itself could be marked by higher volatility.

He advised traders to manage leverage carefully to avoid outsized risks during this period.

The speech will not impact the market’s short-term moves. Observers expected Jerome Powell to use the moment to underline the independence of the Federal Reserve.

With political pressure growing, he is likely to defend the central bank’s role in making decisions based on data rather than external demands.

Analysts also expected him to speak on the long-term policy framework, a topic that could shape his legacy.

For crypto traders, the outcome will mark a classic “wait and see” moment for Bitcoin and altcoins. The digital asset market has been quite bearish in recent weeks.

A dovish stance could have reopened investor appetite for risk, while a cautious or firm message could have pushed Bitcoin and other tokens lower.

Anticipation Built Ahead of the Event

The Jackson Hole Summit Speech had long been a stage for central bankers to influence financial markets.

Jerome Powell’s final address there carried weight because it came at a time of both economic strain and political debate.

Inflation data showed prices rising again, while the job market suggested possible weakness.

The balance between these two signals is likely to make the Federal Reserve Chairman’s decision difficult.

If he leaned toward cutting rates, optimism might have spread across both equities and digital assets.

If Powell focused on inflation, investors could have pulled back, causing prices to drop.

Notably, in the hours leading to the speech, markets already looked cautious with BTC price down 0.64% to $112,374.96. Traders in stocks, bonds, and crypto prepared for sharp moves either way.

The expectation in the market is that the Powell Speech could shape the outlook for September and beyond.