US Federal Reserve (Fed) Jerome Powell spoke at the annual Jackson Hole Economic Symposium, which has significantly pressured the Bitcoin price. Consolidation has been the new normal for BTC over the past few weeks, but with September around the corner, macroeconomic events are likely to exercise renewed influence.
As of this writing, Bitcoin has been hovering around $26,000, but with increasing fluctuations as the Jackson Hole event approaches. All eyes and ears are set on the Fed Chair as he takes center stage and influences global markets.
Jackson Hole Takes Place, Price Of Bitcoin Reacts
In the first part of his speech, the US Fed Chair highlighted the increasing inflation due to the COVID-19 pandemic and its impact on the country’s economy. Government officials believe the economy has shrunk in recent years, but there is evidence that some sectors remain strong and might contribute to swelling inflation.
The Fed Chair stated the following, emphasizing intentions to bring down inflation, as measured by the Consumer Price Index (CPI), to 2%. Powell noted that further potential interest rate hikes could have unintended consequences for financial markets:
We are prepared to raise interest rates further until inflation is on a convincing path towards the 2% rate.
As of this writing, the Bitcoin price and the crypto market are yet to show some reaction to Powell’s seemingly hawkish speech. Across social media, some analysts are pointing out the aggressive tone from the Fed Chair, but there weren’t unexpected statements.
An analyst called the current price action a classic “Powell is talking” dynamic, with the Bitcoin price moving sideways from $26,000. As the analyst pointed out, the price action seems to lean toward the upside as the cryptocurrency seeks liquidity around upper levels.
#Bitcoin Bulls trying to push higher here and now trading back at the Daily & Weekly open.
Powell speaking soon and a possible grayscale decision in 1.5 hours as well.
Both can impact the market but mostly interested in it’s reaction. pic.twitter.com/JpVMjCsE3C
— Daan Crypto Trades (@DaanCrypto) August 25, 2023
On low timeframes, uncertainty remains king. On higher timeframes, a report published by Deribit Insights claims that the market structure will need time to recover following an aggressive move to the downside and the increasing volatility.
In that sense, sideways movement seems likely for the coming weeks until another macroeconomic event comes into the picture. The report stated:
It may take a while for this to recover even if the market finds a new range in the forthcoming weeks as some of the vol selling appetite may have waned, especially on the front end.
Chart from Tradingview
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