Bitcoin, Ethereum and the entire crypto market remained calm ahead of a speech by Jerome Powell, the US Federal Reserve Chair at Jackson Hole.
Bitcoin holds $113,000 ahead of Jackson Hole
Bitcoin has fallen 0.74% to $112,018 over the past 24 hours, while Ethereum has fallen 0.1% to $4,204.
Vincent Liu, investment director at Kronos Research, said the market is hoping for a “Takis” message from Powell. “While the incredible surprises can trigger market rallying, Hawkish's rhetoric can increase sales pressure,” Liu said. He believes that if Powell does not provide guidance on interest rates, the market will enter the consolidation period.
Powell previously emphasized that the September interest rate decision will be formed by macro data. Wall Street is currently hoping to cut rates by 25 basis points in September.
The CME FedWatch tool will make this probability 74.4%. However, recent data is expected. Lower than expected CPI and increased unemployment claims suggest that inflation pressures may be eased, while higher service inflation in PPIs has fueled concerns. Trump tariffs are also projected to contribute to inflation.
According to BTC Markets analyst Rachael Lucas, Bitcoin could experience up to 30% additional fixes if Powell adopts the Hawkish tone. However, Lucas pointed out that the current pullback coincides with Bitcoin's half-year cycle, with prices from September potentially regaining strength towards the end of the year.
The direction of the crypto market for the upcoming period will be determined by US inflation data, the Federal Reserve Conference and ETF inflows.
*This is not investment advice.
