Investors seem to be gearing up for the Chairman of the Federal Reserve- Jerome Powell’s speech at the Annual international central banking conference in Jackson Hole, as it is likely to dictate the future price movements and performance of the crypto space.
The financial markets anticipate that Powell would underline the ongoing necessity of aggressive interest rate increases to combat inflation, even though it brings with it many potential adverse effects.
Currently, the Bitcoin prices are slightly up in the early U.S. trade on Thursday, and is now at $21,676, up 0.96% over the past 24 hours and down 7.79% over the previous week, with a total market worth of $415.
Will the FED Remain hawkish on Interest Rates?
The impending Fed meeting offers hope to act as a catalyst for the Bitcoin price, which has been dredging low for a very long time now. Investors are expecting that the market will rebound if interest rates are not increased further.
According to Invest Answers YouTube Channel, run by a popular analyst with over 444K subscribers, “We have to really be cognizant of the fact that Jerome Powell is in Jackson Hole at the economic conference. He will provide some much-desired clarity on the market and the central bank’s pathway. It’s likely to be the most important catalyst for the week for equities and cryptos alike. Remember, if we get a hint of dovishness, the market will rally.”
The analyst is hopeful that the Fed won’t be raising the interest rates by more than a percent, or it would cause major damage to the economy. In the last meeting, the Fed hinted at slowing down their interest hike rates.
The host of the channel also displayed a chart to demonstrate how Bitcoin’s price has been rising over the last six months, revealing a double bottom after reaching the $25,000 level and then dropping immediately to $20,750. Although it appeared to have support while falling to those levels, that might no longer be the case.
The expert is concerned that Bitcoin’s momentum is waning and that the Fed meeting is currently the primary source of optimism. According to the investment Guru, if the Fed raises interest rates, BTC may potentially drop to $20,000.
The most recent data show that the price of Bitcoin has been stable at $21,506.
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