Bitcoin price today: steady near $114k amid Fed rate, independence concerns

Investing.com-- Bitcoin hovered around $114,000 on Thursday as investors stayed cautious before a speech from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, while political pressure on the Fed added to uncertainty.

The world’s largest cryptocurrency last traded 0.3% higher at $114,120 as of 10:17 ET (14:17 GMT).

It was just shy of reaching a six-week trough as it fell to as low as $112,386 in the previous session.

Bitcoin muted amid Fed rate caution, political pressures

Markets are bracing for the Federal Reserve’s annual symposium in Jackson Hole, where Chair Jerome Powell will speak on Friday. 

They are looking for clarity on whether the central bank is preparing to cut rates in September or keep policy steady due to lingering inflation. 

Investors have avoided big moves before the speech, leaving Bitcoin trapped near two-week lows.

Adding to caution, U.S. President Donald Trump has escalated criticism of the Fed. Trump has demanded the resignation of Fed Governor Lisa Cook and accused Powell of failing to control inflation. 

The attacks have raised concerns that political pressure could undermine the Fed’s independence, leading to increased risk aversion, weighing on speculative assets such as cryptocurrencies.

The Fed’s July meeting minutes, released on Wednesday, showed most officials were more concerned about inflation rising than about weakness in the labour market. 

The central bank had kept rates unchanged in July, but two Trump-appointed officials dissented in favour of a cut, the first dual dissent of that kind in decades.

Beijing mulls yuan-backed stablecoins - Reuters

China is weighing a policy shift that would allow yuan-backed stablecoins, a move aimed at promoting wider use of its currency globally, Reuters reported on Wednesday, citing people familiar with the discussions.

The State Council may review a roadmap later this month that sets adoption targets and assigns regulatory duties, the report said.

Approval would mark a major reversal of Beijing’s stance after banning crypto trading in 2021, and comes as U.S. dollar-linked stablecoins dominate global markets.

Crypto price today: altcoins rise; Dogecoin jumps 5%

Most altcoins traded higher on Thursday, but gains were capped by the cautious mood.

World no.2 crypto Ethereum jumped more than 4% to $4,319.

World no. 3 crypto XRP gained nearly 3% to $2.91.

Solana advanced 4%, while Cardano and Polygon added around 3.4% each. 

Among meme tokens, Dogecoin jumped around 5%, while $TRUMP fell 1%.

(Ayushman Ojha contributed to this report.)