Bitcoin Holds Support at $112,500 Ahead of Powell’s Jackson Hole Speech
Bitcoin (BTC) maintained a support level at $112,500, aligning with the 61.8% Fibonacci retracement from its April to July rally. A muted rebound is noted ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole speech.
- Market anticipates a 25 basis point rate cut in September, with another expected by year-end.
- Analysts predict a potential 2% price swing for BTC following Powell's address.
- A dovish stance could lead to increases for ether (ETH), currently above its trendline from earlier lows.
Derivatives Positioning
- Global futures open interest (OI) for BTC and ETH rose by 1%, indicating capital inflow despite price drops.
- Declines in OI for SOL, DOGE, LINK, XRP, and ADA suggest capital outflows; smaller coins like MAT, ULTIMA, and LUMIA saw increased OI.
- Speculative activity has decreased, with trading volumes for major tokens dropping over 20%. Traders are waiting for Powell’s comments.
- CME shows elevated OI in ether futures near 2 million ETH, while BTC remains below July lows.
- ETH options OI rose to $1 billion, the highest this year; BTC's options OI reached $4.44 billion, the most since May.
- BTC options on Deribit suggest a 2% price swing in the next 24 hours, with average volatility at 1.18% over the past month.
- BTC puts are trading at a premium to calls, reflecting downside fears.
- OTC network Paradigm showed mixed block flows with various strategies utilized.
Token Talk
- Dethective reported coordinated wallet activities involving YZY and LIBRA launches, with insiders extracting nearly $23 million through pre-seeded trades.
- A wallet purchased $250,000 of YZY at $0.20 and sold it for nearly $1 million profit in eight minutes.
- This wallet had prior gains from LIBRA using similar tactics, with significant profits made before public traders could react.
- Insider information is suspected due to rapid investment behavior during token launches.
- Research indicated over 60% of YZY traders lost money; most wallets engaged were either fake or insiders exiting.
- Ripple and SBI Holdings plan to launch the RLUSD stablecoin in Japan by Q1 2026, backed by U.S. dollar deposits and short-term Treasuries.
- SBI VC Trade will distribute RLUSD under a new regulatory framework, strengthening trust in digital finance.
- The initiative reflects Ripple and SBI’s growing partnership as Japan embraces digital asset regulations.