Bitcoin Hovers at $113K; Solana and Dogecoin Lead Gains Ahead of Powell’s Jackson Hole Speech

Bitcoin (BTC) hovered above $113,600 on Thursday after a slight rebound, with traders watching Powell’s address for clues on whether the central bank is ready to endorse rate cuts in September.

Solana’s SOL (SOL) and dogecoin (DOGE) led gains among majors with a 4% bump. Gains across XRP (XRP), BNB Chain’s BNB (BNB), ether (ETH) and Tron’s TRX (TRX) remained muted, each rising between 1%-3%.

Weakening jobs data has boosted expectations for easing, but tariff-driven inflation remains sticky, leaving risk assets exposed to disappointment.

“The Fed faces a difficult balancing act — cut too soon and risk reigniting inflation, wait too long and growth risks deepen,” said Nick Ruck, director at LVRG Research, said in note to CoinDesk.

Sentiment has deteriorated quickly. The fear and greed index plunged to 44 — its lowest in nearly two months — after printing 75 just six days ago. The slide mirrors price action in bitcoin, which briefly dipped to $112,500 earlier this week before finding support near month-to-date lows.

A break below $108,000 could open the door to $100,000, some traders warn.

“Bitcoin fell to $112,500 in the morning, receiving temporary support when it touched the area of recent lows at the start of the month. At the same time, the day before, sales increased after a decline below the 50-day moving average — a bearish signal,” said Alex Kuptsikevich, chief market analyst at FxPro, in an email.

“Now, all attention is focused on whether there will be a pullback to a potentially stronger support area near $108,000. If there is no support there, a straight road to $100,000 will open,” he noted.

“The crypto market lost momentum earlier than Nasdaq 100 stocks, regaining its reputation as a more sensitive indicator of investor sentiment,” Kuptsikevich added.

On-chain data points to fragility as well. CryptoQuant reported that short-term bitcoin holders are selling at a loss for the first time since January, a dynamic that previously marked deeper corrections.

Santiment flagged lower trading volumes relative to July despite August’s new highs, alongside a surge in retail activity — a mix often associated with local tops.

As such, some researchers argue the recent rally in Bitcoin may be more about currency weakness than genuine inflows.

“Bitcoin’s recent records may be a consequence of the dollar’s depreciation rather than a reflection of real value growth,” noted a report from Presto Research earlier in the week. “With this calculation, the BTC rate will be lower than the 2021 peaks and the levels after the 2024 elections.”

With Powell’s Jackson Hole comments set to frame September’s meeting, traders are bracing for volatility. A dovish tilt could trigger relief rallies across the crypto market, but any hesitation on rate cuts risks accelerating the slide toward $100,000.