- Market participants are eagerly awaiting Producer Price Index (PPI) data and statements from Federal Reserve Chairman Jerome Powell, which could significantly impact Bitcoin and other cryptocurrencies.
- Despite the Federal Reserve’s ongoing struggle with high inflation, which continues to exceed the 2% target, the possibility of a rate cut is diminishing day by day.
- Analysts suggest that both the increase in short-term inflation expectations and the cautious stance of Federal Reserve officials have negatively affected market risk appetite.
Bitcoin and other cryptocurrencies could see significant volatility as market participants await key inflation data and statements from Federal Reserve Chairman Jerome Powell.
Will Bitcoin See a Powell Pump?
The PPI and Consumer Price Index (CPI) data that the Federal Reserve monitors for inflation, along with statements from Chairman Jerome Powell regarding interest rates, have a significant impact on Bitcoin and other cryptocurrencies. Analysts predict that this week’s CPI, Core CPI, PPI, and the chairman’s speech could influence the direction of Bitcoin’s price. Some analysts believe that Powell’s speech will positively impact Bitcoin’s price and trigger a rise, while others think that we might see inflation data slowing down for the first time in the near future.
Powell’s Upcoming Speech
Federal Reserve Chairman Jerome Powell will be speaking at the Dutch Foreign Bankers Association panel. His speech is expected to start at 17:00 Turkish time. Market participants will be closely monitoring his statements for any indications of future monetary policy direction. This could potentially lead to increased volatility in Bitcoin and other cryptocurrencies.
Conclusion
As the market awaits key inflation data and statements from Federal Reserve Chairman Jerome Powell, Bitcoin and other cryptocurrencies could see significant volatility. Depending on the data and Powell’s statements, we could see a positive impact on Bitcoin’s price or the first signs of slowing inflation. As always, investors are advised to monitor these developments closely and make informed decisions.
