With the Jackson Hole Conference underway in Wyoming USA all eyes especially the crypto sector is eagerly waiting the outcome. It is a key annual conference in which the roadmap is laid out by the Federal Reserve for the central bank’s plan for the next year. A key address will be made by Fed Chair Jerome Powell at 10:00AM ET. His speech will have a big impact on the crypto markets and Bitcoin.
Crypto analyst and CEO of Eight Global Michael van de Poppe explained that it is crucial for BTC to remain afloat above $21K. In the eventuality of BTC reaching $21.8K it could even accelerate above $23K.
Market Pensively Waiting For Fed Chair Powell’s Speech
Powell speech is expected to increase volatility in the crypto market. His speech can result wild fluctuation of prices in Bitcoin. Most crypto entities are warning investors that a period of extreme volatility is being seen in the crypto values. Investors are advised to exercise extreme caution.
Chief market strategist of Blue Line Futures Phil Streible believes that the stock market is going to tank and see extreme lows in the coming days. The Crypto Sector is strongly related to the stock market and its fortunes rise and fall with the health of the stock markets. A couple of key policy by the Fed Chair statements will decide the fate of the crypto sector-it will see a bullish trend or a return to bearish sentiments.
If Powell takes a hawkish stance against inflation and hikes the interest rates, the market will tumble and the worst can be expected. The doves and hawks in the Fed like Minneapolis Fed president Neel Kashkari and St. Louis Fed president James Bullard, are actively backing a 75 bps hike in September. However, Fed Chair has to also keep an eye on recession and with most economies heading towards recession he can take a conciliatory note and the markets can once again bounce back and bloom.