Bitcoin Price Prediction: BTC Could Rally to $120K If Powell Hints at Rate Cuts

Highlights:

• Bitcoin is mostly flat in the day as investors sit on the sidelines
• Cautious approach due to the upcoming speech by the Fed Chairman later in the day
• A dovish speech could send Bitcoin to $120k short term

Bitcoin (BTC) is flat today, reflecting the general lack of market movement across most asset classes today. At the time of going to press, Bitcoin was trading at $112,815, down marginally by 0.55%. However, trading volumes are down during the day. They have dropped by 9.15% to stand at $58.44 billion. These dynamics are an indicator that while investors are taking a cautious approach to the market at the moment, those already holding Bitcoin are not selling. The prevailing sentiment is that the uncertainty is temporary and that long-term, Bitcoin is headed higher. This sentiment is aligned perfectly with events in the market today. 

Bitcoin Traders Await Jerome Powell Speech for Direction On Rates

Today at 10:00 ET, Federal Reserve Chairman Jerome Powell is expected to give a keynote speech in Jackson Hole. The speech, expected to be his last in his term as governor, is much anticipated as it could provide a hint on the direction that the Federal Reserve is going with interest rates. There has been considerable uncertainty around interest rates due to conflicting economic data in recent weeks.

Jackson Hole today — Powell speaks at 10am EST. Rate cut announcement on deck. Hold tight. No need to get caught in the line of fire. pic.twitter.com/RAhAQF50E7

— Oliver Garcia (@ogfxtrader) August 22, 2025

On one hand, the labor market has softened, which is a key pointer that a rate cut may be necessary. On the other hand, inflation appears to be rising, and the Federal Reserve took note of this in the recently released Fed minutes. If the Fed Chairman hints at a possible rate cut, risk-on assets could rally, with cryptocurrencies expected to outperform due to their history of parabolic returns.

In the case of Bitcoin, a hint of a possible interest rate cut could see the price rally to $120k in the short term. However, any hawkish stance could send Bitcoin lower. This may explain why the market is quiet today as investors wait for Powell to make his speech before they can start taking positions.

Market Analysts Giving Mixed Bitcoin Price Predictions

The cautious approach to Bitcoin currently can also be linked to mixed messaging from analysts about its short-term trend. Some analysts argue that the 2024/25 Bitcoin halving bull cycle is likely to be extended this year. This has seen projections such as a rally to $200k and even $250k within the year start to come up.

However, other analysts argue that, unlike in the past when Bitcoin was mostly driven by the halving cycle, its price action is increasingly driven by macroeconomic factors. For this reason, issues like interest rates are more important at this point than the halving cycle. From the perspective of this group of analysts, Bitcoin may stall if the Federal Reserve remains hawkish for the remainder of 2025.

Two potential paths for Bitcoin nobody I know of has presented. Both rooted in long-term compounding math, together I estimate with greater than 80% probability of playing out.

Both paths ultimately respect the same long-term log regression the difference is whether this cycle… pic.twitter.com/wB5G3KcKFX

— Jordan Lindsey (@TradersMastery) August 19, 2025

Long-Term Outlook for Bitcoin Remains Bullish

Despite the ongoing uncertainty, the longer-term view of Bitcoin remains bullish. This is mainly due to the US and most of the world taking an increasingly pro-cryptocurrency stance. The US, for instance, has passed laws that make it easier to invest in cryptocurrencies, including opening up retirement accounts to cryptocurrency investments. This is a factor that could see Bitcoin demand increase over time. With rising demand and Bitcoin’s finite supply, the odds of a price rally to highs of $200k or more are high.

Americans can soon allocate to #Bitcoin in their 401(k)s

💵 〜$550B flows into 401(k)s every year
📈 Just 5% to BTC = $30–40B inflows annually
⏩ By 2035: $343B – 6x today’s US spot BTC ETFs

Retirement savings could be Bitcoin’s next big catalyst pic.twitter.com/viDVk9umi7

— Adrian W. J. Fritz (@adrianwjfritz) August 19, 2025

Technical Analysis – Bitcoin Price Eyes Major Support Ahead of Powell Speech

Ahead of Powell’s speech, Bitcoin is facing intraday bearish pressure. After a minor consolidation earlier in the day, Bitcoin is currently trending towards the $112,110 support.

If Powell makes a dovish speech, Bitcoin could bounce off the $112,110 support and potentially hit $114,708 in the short term. On the other hand, if he makes a hawkish statement, Bitcoin could drop through the $112,110 support. In such a case, Bitcoin could test $110k in the short term.