Crypto markets experienced a significant downturn this week, with Bitcoin plummeting below $113,000 after the Cleveland Federal Reserve President Beth Hammack rejected the possibility of a September rate cut. This decision aligns with the hawkish stance advocated by Fed Chair Jerome Powell and adds to growing market uncertainty surrounding cryptocurrency assets’ future trajectory. Hammack emphasized that the current economic data indicates a lack of justification for lowering interest rates, citing persistent inflation trends and potential tariff effects on prices in the years ahead. Despite calls for rate reductions from former Fed officials like Jim Bullard, Hammack’s statement underscores Powell’s prevailing consensus within the Fed for continued elevated rates to combat inflation. Market sentiment is anticipating a confirmation of this hawkish stance during Powell’s keynote address at the upcoming Jackson Hole Economic Symposium. Bitcoin’s recent price drop reflects this evolving market outlook, with traders now anticipating a greater influence on crypto prices from monetary policy decisions rather than traditional investment opportunities.