Bitcoin is trading near $113,000, losing almost 5% over the week, with market participants focusing on the $110,000 and $120,000 marks. According to Deribit, these levels concentrate the largest option volumes and open interest.

“Risks are extremely high ahead of Fed Chair Powell’s speech at Jackson Hole,” said James Toledano, Chief Operating Officer at Unity Wallet. He noted that volatility positioning remains defensive, and only after the speech can a new market direction or continuation of the current trend be expected.

Analysts warn: if the market is wrong in its expectations for a Fed rate cut, “risk assets like Bitcoin and Ethereum will fall.”