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Bitcoin price in limbo as Fed Chair prepares to address global central bankers

Bitcoin price in limbo as Fed Chair prepares to address global central bankers

The volatility of the cryptocurrency market continues to be relatively low as investors prepare for the pivotal speech that will take place in Jackson Hole, Wyoming, on August 26, where the Chairman of the Federal Reserve, Jerome Powell, will address the annual global central banking conference.

Despite the potential downsides to economic growth, the financial markets are anticipating that Powell will emphasize the sustained need for aggressive interest rate rises to battle inflation.

However, the fact that selling pressure has been building up in Bitcoin (BTC) in the days leading up to the event suggests that the market may have already included this anticipation in its prices. 

Bitcoin prices are slightly up in early U.S. trade on Thursday, August 25, trading at $21,676, up 0.96% in the last 24 hours and down 7.79% across the previous week, with a total market worth of $415, according to CoinMarketCap data.

Bitcoin 7-day price chart. Source: CoinMarketCap

Due to this, and because there are hints that inflation may be reaching its high, the Jackson Hole symposium may serve as a positive trigger for the markets. However, volatility is expected regardless of what happens. Bears have a modest near-term technical edge, but the respite has also resulted in a “fall in volatility,” which hints that a larger price movement is imminent.

The Jackson Hole symposium

The symposium is held annually and is attended by central bankers, finance ministers, academics, and financial market players from across the globe where a panel discussion on economic policy will include Jerome Powell.

Given the revelation that President Biden would forgive student loan debt of $10,000 for anyone earning less than $125,000 per year. Expectations about inflation have increased, as has the 10-year treasury yield, which may need the Federal Reserve to take a tougher stance against inflation.

With the rise and threat of inflation on the markets economist, Harry Dent, has argued his case that crypto is the ‘next big thing’ but he expects that the market’s growth will mirror the dot-com bubble that saw stocks like Amazon (NASDAQ: AMZN) crash before rallying to record highs.

Disclaimer: The content on this site should not be considered investment advice Investing is speculative When investing, your capital is at risk.

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