With $Bitcoin (BTC.CC)$ well-known for its volatility, the past 24 hours have seen the token trading in an unusually tight range.

According to data from CoinMarketCap, the Bitcoin price topped out at US$21,646 and hit lows of US$20,955 over the past full day.

Why the muted price action?

The reason may stem from Jackson Hole.

What does Jackson Hole have to do with Bitcoin?

If you're not familiar with Jackson Hole, it's located in the US state of Wyoming, surrounded by the Grand Teton mountains.

Aside from offering some of the best snow skiing in the world, the small town also hosts central bankers and leading policymakers from across the globe at its annual retreat.

So, what does this have to do with the Bitcoin price?

Cryptos have been moving closely in line with US stocks this year. This week, investors appear to be taking a wait-and-see attitude regarding what Federal Reserve chair Jerome Powell will say on Friday morning US time (Friday night in Australia).

With inflation running hot in the world's number one economy, analysts widely expect Powell to reiterate the central bank's determination to keep hiking interest rates until inflation cools.

Commenting on Powell's upcoming speech at Jackson Hole, Laura Rosner-Warburton, a senior US economist at MacroPolicy Perspectives, said (quoted by Bloomberg):

That's everyone's top-of-mind question: How much will Powell micro-manage financial conditions? We have reached a point where the economy is showing signs of slowing. If we don't see more slowing in the data and instead things bounce, then the Fed will have to more actively manage financial conditions.

Noelle Acheson, head of market insights at Genesis, added:

As August limps toward a weak close, market attention is turning to this week's Jackson Hole symposium. A key question on traders' minds is whether the Fed chairman will signal a potential reduction in the pace of hikes, double down on his nominal commitment to lowering inflation, or indeed try to convince the market that the Fed can have its proverbial cake and eat it, too.

Should Powell flag a more dovish path ahead for the Fed, risk assets and the Bitcoin price will likely benefit.

If the Fed instead leans towards further aggressive tightening, equities and the Bitcoin price will come under fresh pressure.