Crypto markets eye Jackson Hole

Markets have priced out a large Fed cut ahead of Powell’s Jackson Hole speech as liquidations and volatility rise.

Crypto Traders Watch Jackson Hole as Ether Bitcoin XRP Fall Sharply

Crypto markets spent the past 24 hours unwinding bullish bets, with about 270 million dollars in liquidations hitting traders. Ether led losses among longs, followed by bitcoin, as traders reassessed risk ahead of the Jackson Hole gathering. Odds of a September rate cut moved lower, with no-cut bets rising from 12% to 26%, and Derive.xyz data showed seven day implied volatility for ETH climbing to 73% while the 30 day IV stayed steadier. This suggests near term turbulence but not a full market collapse.

Nick Forster, founder at Derive.xyz, described the move as a reset of short term positioning rather than a structural shift. Augustine Fan, SignalPlus head of Insights, noted that markets have already priced out a large cut, saying about 90% of a single cut was priced as of Friday’s close. Focus now shifts to Powell and the Jackson Hole talks, with investors weighing how much policy guidance may actually arrive.

Bitcoin slipped to around 115,036 dollars, its lowest in nearly two weeks, while Ethereum traded near 4,235 dollars. XRP held firmer at 3.02 dollars, trimming weekly gains to about 4 percent after a earlier peak of 9 percent. Traders see a volatile session ahead as they parse policy signals and macro risk.

The episode shows how crypto markets still react quickly to macro cues, especially when leverage and liquidity are in play. Jackson Hole is not a crypto event, yet the policy stance at the meeting will ripple through risk assets and could set the tone for weeks. The tension lies between short term trading dynamics and longer term fundamentals, with volatility acting as the dominant currency of the moment.

If policy signals stay modest, traders may accept more range bound moves even as positions shift. If inflation dynamics surprise to the upside or policymakers signal a delayed easing path, risk assets couldFace renewed pressure. For investors, the message is clear: stay disciplined, manage leverage, and watch how policy shifts influence liquidity and risk appetite.

Highlights

Policy signals will steer this market more than any single price move.