Bitcoin may have reached its lowest level after Powell’s speech
After Jerome Powell’s speech in Jackson Hole, experts say it may be time for Bitcoin to start anew after hitting lows.
Is bitcoin at a low following the words of the Fed chairman?
The Fedits number one, Jerome Powellwho for several months has launched a very aggressive interest rate policy to challenge rate hikes, said in a speech on August 26 that he intends to withdraw “until the job is done”, and that is until the institution is confident that inflation ” will be under control,” although that process “will cause some pain for households and businesses.”
Markets immediately fell back into the negative as word was pretty clear about the Federal Reserve’s intention to continue with its interest rate increase policy. It was a different story for Bitcoin, which, on the other hand, having fallen 6% since Powell’s speech, may have found important support to start anewaccording to experts.
Tradersin the words of the Fed chairman, now bet on one 65% chance that the Federal Reserve will raise interest rates by 50 basis points in September, up from 32% just a day ago, according to the CME FedWatch Tool.
The fall in the main cryptocurrency appears to be less than traders expected. That’s roughly in line with the decline of the major Nasdaq 100 technology index over the period, while in the past Bitcoin’s losses have often been greater than those of financial markets, as it appears to be increasingly so. correlated over the past year, particularly with the Nasdaq technology index.
Expert analysis regarding the cryptocurrency market
Oanda senior market analyst Ed Moyawrote in a note:
“Bitcoin is showing some resistance here as it has broken back above the $20,000 level, despite broader stock market weakness. Cryptocurrency traders are not used to Bitcoin sustaining a loss on Wall Street, so this could be a promising sign.”
To John Toro, head of the Independent Reserve’s digital asset operations, cryptocurrencies continue to be viewed as “a high-risk beta asset.” But according to the analyst, the market will greatly benefit from what is to come upgrading the Ethereum networkwhich is likely to be a catalyst for new investment throughout the market.
According to most analysts, the level of $19,800 will be a very strong support. On Tuesday, the major cryptocurrency fell below $19,500, only to recover to $20,400.
It remains to be seen what the reaction might be Bitcoin, which seems to have lost the property of an anti-inflationary tool, which it has had for some years. Not coincidentally, when the last reading of US data in July, which talked about US inflation slowing down a bit, Bitcoin and Ethereum reacted positively.
