Bitcoin’s Wild Ride: Will It Hit $120K? 🚀

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Key Takeaways 

Bitcoin rallied about 5% on Friday after Powell’s dovish tilt. However, a few hours later, markets appeared split on the September rate cuts.

Bitcoin, ever the drama queen, bounced back 5% to $117K after Fed Chair Jerome Powell hinted at a September rate cut. But just as quickly, the markets started arguing like a group of squirrels debating the best nut stash. 🐿️

Powell, ever the master of ambiguity, suggested a rate cut while simultaneously warning about inflation. It’s like he’s trying to juggle flaming torches while wearing a blindfold. 🔥

“In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside-a challenging situation…Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”

“In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside-a challenging situation…Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”

Market digests Powell’s remarks

Immediately after the speech, CME FedWatch showed the probability of the 25th of September BPS rate cut rising to above 90%. But let’s be honest, if the Fed were a person, they’d be the one saying, “I’m fine, really, I’m fine.” 😅

BTC leaped from $111.6K to $117K, with leveraged bulls riding the wave like they’re on a rollercoaster with no seatbelt. 🎢

About $300 million rushed into Binance derivatives, because nothing says “I trust the economy” like throwing money at a digital asset that’s basically a glorified meme. 😂

However, by press time, BTC had cooled to $116K as markets digested Powell’s remarks. Like a toddler who’s been told “no” one too many times. 😩

Mixed views from market voices

Roshan Robert, CEO of OKX U.S., claims rate cuts will boost investor appetite. Because nothing says “investor confidence” like a central bank that can’t decide if it’s a parent or a strict teacher. 🎓

“Rate cuts don’t just ease financial conditions – they unlock investor appetite. As liquidity returns, we expect to see deeper markets, tighter spreads, and higher volumes with OKX customers. It’s in these moments that crypto proves it’s moving from hedge to core asset.”

However, Katalin Tischhauser, Head of Research at Sygnum Bank, viewed Powell’s speech as ‘contradictory.’ While the Fed chair singled out unemployment risk, Tischhauser noted that he also said the labor market was ‘in good shape.’

“This mixed messaging might leave observers unsure whether he was seriously considering a cut or simply bowing to external pressures.”

But Tischhauser told AMBCrypto that the crypto market could extend its rally despite the uncertainty. Because nothing says “I’m optimistic” like a market that’s been through a tornado and still thinks it’s a picnic. 🌪️

What to expect next week

That said, the rally appeared to have been driven by leverage, as spot BTC ETFs saw a daily outflow of $23.15 million on Friday, bringing weekly outflows to $1.17 billion. Because nothing says “I’m bullish” like watching your money leave. 💸

In addition, retail demand also dipped lower as shown by the Coinbase Premium Index, further underscoring a risk-off sentiment amongst U.S. investors. Like a teenager who’s suddenly decided that excitement is overrated. 🙃

That said, next week, the U.S. unemployment claims on the 28th of August, will give more clarity on the labor market and September rate cuts. Since it’ll eventually affect BTC moves and whether it can reclaim $120K, it will be worth tracking. Or, as I like to call it, “The Great Crypto Whiplash.” 🌀

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2025-08-23 14:26