Bitcoin slipped below $113,000 on Monday, wiping out the sharp gains that followed dovish comments from Federal Reserve Chair Jerome Powell. At the same time, Ether, the world’s second-largest cryptocurrency, continued trading close to record highs.
As of 01:27 ET (05:27 GMT), Bitcoin was down 2.1%, changing hands at $112,550. In the prior session, the token touched a six-week low near $111,000 as traders locked in profits after Friday’s rally.
On Friday, Bitcoin briefly surged above $117,000 after Powell’s remarks at the Jackson Hole symposium. He acknowledged the growing risks to the labor market and hinted that September could bring a rate cut, stating that the “shifting balance of risks may warrant adjusting our policy stance.” His comments fueled optimism across risk assets, including cryptocurrencies.
However, the rally quickly faded as profit-taking set in. Analysts also pointed to strong resistance levels and a consolidation phase as reasons for Bitcoin’s pullback.
Meanwhile, Japan’s Finance Minister Katsunobu Kato announced on Monday that the government intends to build a supportive framework for digital assets. He noted that cryptocurrencies can play a role in diversified investment portfolios, signaling Japan’s shift toward broader adoption. The initiative highlights the country’s effort to balance innovation with financial stability while reinforcing investor protections.
Beyond Bitcoin, most altcoins traded within a narrow range. Ether slipped 1.7% to $4,715 after hitting a record $4,955 in the previous session. XRP also dropped 1.7% to $3.00. Solana eased 0.8%, Cardano lost 0.7%, and Polygon edged 0.2% lower. Among meme tokens, Dogecoin slid 3%, while $TRUMP fell 1.6%.
