#Bessent on BTC Reserves  Bitcoin Shows Low Volatility Ahead of Fed Week, Calm Before the Storm?

Bitcoin BTCUSD is entering the new week with a rare calm. However, macroeconomic forces that could determine the market's direction for the rest of August are also at play.

Despite the low trading volumes typical of weekends, the leading cryptocurrency is exhibiting low volatility.

Bitcoin Stable Before Fed Minutes and Jackson Hole

Bitcoin is trading at $117,600 and maintained a sideways price slump over the weekend. Data shows the volatility index has fallen to 1.02%, a level last seen in October 2023.

It's great to see zero enthusiasm for Bitcoin this weekend. There's no futures gap to close.

It's entered a maturing cycle where retail investor enthusiasm has cooled and institutional flows are increasingly shaping Bitcoin's price action. Bitcoin's historically low volatility levels are reinforcing this theme.

Bitcoin's volatility is near all-time lows. Institutional buyers are squeezing Bitcoin's volatility to twice that of gold. Twice the volatility for a 10x return?

However, the calm weekend atmosphere may not last long. Several market-moving US economic indicators are already on the way.

On Wednesday, policymakers will release the minutes of the Federal Open Market Committee (FOMC). This comes after the latest Consumer Price Index (CPI) report revealed that inflation rose by 2.7% annually in July.

This data point will be presented by a transcript of the July meeting. The Fed left rates unchanged at 4.25–4.50%, marking the first double-disagreement vote on cuts since 1993. Powell's subsequent press conference was uncertain, leaving markets searching for clarity.

The minutes could reveal just how divided the committee is. This would likely push stocks higher, lower yields, and weaken the dollar, potentially generating bullish implications for Bitcoin.

However, a hawkish message will likely dampen growth and reinforce caution heading into Friday's main event.

The week concludes with the Jackson Hole Symposium, where Fed Chair Jerome Powell will deliver his keynote address at 10:00 a.m. ET on Friday.

His remarks are crucial because past Jackson Hole speeches have reshaped expectations for rates and growth. This has had a ripple effect on stocks, bonds, and cryptocurrencies.

If Powell emphasizes that growth is slowing, this suggests a dovish tone. Once interest rate cuts are factored in, yields could fall, and growth stocks could rise, while Bitcoin could benefit from renewed risk appetite.

However, if the Fed chair leans on persistent inflation, such a hawkish tone could boost yields, boost cyclical stocks, and potentially disrupt Bitcoin's upward trajectory.

Therefore, markets face several catalysts that could influence investor sentiment for the third quarter, including the Fed minutes, Jackson Hole, and other US economic signals.