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Reading: Rate Cut Hopes Shattered Bitcoin Dives as Cleveland Fed Takes Hawkish Line
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Deythere > News > Market > Rate Cut Hopes Shattered Bitcoin Dives as Cleveland Fed Takes Hawkish Line
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Rate Cut Hopes Shattered Bitcoin Dives as Cleveland Fed Takes Hawkish Line

Rate cut hopes shattered Bitcoin dives as Cleveland Fed takes hawkish line
Jane Omada Apeh
Last updated: August 23, 2025 7:18 am
By
Jane Omada Apeh
Published August 23, 2025
5 Min Read
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According to the latest reports, the Bitcoin price dropped below $113,000 yesterday after Fed’s Hammack dismissed growing calls for an interest rate cut. Cleveland Federal Reserve President Beth Hammack said on Thursday that inflation is too high and current conditions don’t justify a rate cut.

Contents
  • Hammack Says No To Rate Cut at Jackson Hole
  • Markets Hit the Gas in a Hurry
  • What This Means for the Crypto Market
  • Conclusion
    • Summary
  • FAQs
    • Why did Bitcoin price go down?
    • How did crypto markets react?
    • When do markets shift back?
    • Will markets calm before September?
  • Glossary
    • Sources

Her comments disrupted both Wall Street and crypto traders who had priced in a near certain rate cut just a week ago. Markets are quickly recalibrating as the Fed’s hawkish stance shows no signs of softening.

Hammack Says No To Rate Cut at Jackson Hole

At the Kansas City Fed’s annual Jackson Hole Symposium, Cleveland Fed President Beth Hammack delivered remarks that crushed market expectations. When asked if current data justified a rate cut, she said

“We have inflation that’s too high and has been trending upwards over the past year. If the meeting was tomorrow, I would not see a case for reducing interest rates.”

Bitcoin Price Reaction Falters as Fed Rejects Rate-Cut Hopes
Bitcoin Price Reaction Falters as Fed Rejects Rate Cut Hopes

She warned that inflation remains too high and that present conditions do not justify policy easing. She emphasized the persistent inflation and said tariff impacts have only just begun to materialize and will be broader next year.

Markets Hit the Gas in a Hurry

Following the announcement, markets reacted quickly. Bitcoin, which had previously been flirting with an all-time high above $124,000 just few weeks ago on rate cut hopes, dropped nearly 10% and went below $113,000. In tandem, the probability of a September rate cut dropped to around 70% from near certainty just days ago.

Bitcoin price wasn’t hit alone; Ethereum, Solana and other major altcoins also dropped as markets repriced Fed policy. Traders turned to wait and see mode, eyeing Fed Chair Jerome Powell’s keynote for any guidance. Equities paused too, with a strong dollar and rising yields tempering risk appetite.

What This Means for the Crypto Market

Fading rate cut hopes has recalibrated the risk charts. Bitcoin’s price action from speculative rally to sharp drop shows how sensitive the market is to macro signals. The flight to safety opens up a broader rethink as liquidity driven euphoria gives way to inflation focused caution.

Bitcoin Price Reaction Falters as Fed Rejects Rate Cut Hopes
Bitcoin Price Reaction Falters as Fed Rejects Rate Cut Hopes

Conclusion

Based on latest research, Bitcoin price drops below $113,000 showing how fast markets move when central banks deliver hawkish signals. Inflation is still above target and tariffs have only just started to impact the economy. Policymakers like Beth Hammack are in no rush to ease.

Now, the market waits for Powell’s Jackson Hole speech to see what’s next. Until then, Bitcoin price action reflects how deep crypto assets are to the monetary policy winds.

For in-depth analysis and the latest trends in the crypto space, our team offers expert content regularly.

Summary

Bitcoin price went negative after Cleveland Fed President Beth Hammack said there’s no case for a rate cut, killing rate-cut hopes. Bitcoin fell below $113,000 and rate-cut expectations dropped to 70%. Altcoins also dropped as traders priced in Fed caution. Markets are now waiting on Chair Powell’s Jackson Hole speech to get direction.

FAQs

Why did Bitcoin price go down?

Markets reacted to Cleveland Fed President Hammack who said current data doesn’t support a rate cut.

How did crypto markets react?

Bitcoin fell 10% and went to session lows of $113,000. Altcoins also dropped and rate-cut odds plummeted.

When do markets shift back?

Traders now look to Fed Chair Powell’s speech at Jackson Hole. Until then, cautious is the sentiment.

Will markets calm before September?

Not unless data shifts big time. With inflation still high and tariffs looming, policymakers are prioritizing clarity over rate cuts.

Glossary

Rate-cut odds – Market probability of a rate cut at the next Fed meeting.

Inflation – How fast consumer prices rise; policymakers watch this for decisions.

Tariff effects – Impact of import taxes on domestic prices; delayed or uncertain impact makes Fed decisions harder.

Jackson Hole – Annual economic conference where policymakers and investors get clues on policy direction.

Sources

Reuters

The Wall Street Journal

CoinDesk

Yahoo Finance

Barron’s

Coinpedia

Fintech News

CoinGape

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TAGGED:Beth HammackBitcoin priceBitcoin price declineBitcoin price dropcrypto marketRate-cut odds

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ByJane Omada Apeh
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Omada is an experienced crypto journalist delivering in-depth analysis and insights on the ever-evolving world of cryptocurrency and blockchain. Her expertise spans market trends, regulatory developments, and innovative use cases. She is dedicated to providing accurate and engaging content for crypto enthusiasts and newcomers alike.
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