- Federal Reserve (Fed) Chairman Jerome Powell spoke at the annual Jackson Hole Economic Symposium, which significantly suppressed the price of Bitcoin.
- In the first part of his speech, the Fed Chairman emphasized the increasing inflation caused by the COVID-19 pandemic and its impact on the country’s economy. Government officials believe that the economy has contracted in recent years.
- An analyst described the current price movement as a classic “Powell speaking” dynamic and said that the price of Bitcoin remained flat at $26,000.
Fed Chairman Jerome Powell’s speech in Jackson Hole shook the price of Bitcoin and the markets; will BTC be able to recover quickly?
The Fed Chairman Spoke at Jackson Hole
Federal Reserve (Fed) Chairman Jerome Powell spoke at the annual Jackson Hole Economic Symposium, which significantly suppressed the price of Bitcoin. Consolidation has become the norm for BTC in the past few weeks, but with the approach of September, macroeconomic events are likely to have an impact again.
As this article is being written, Bitcoin is hovering around $26,000, but increasing fluctuations are being observed as the Jackson Hole event approaches. All eyes and ears are on the Fed Chairman when he takes the stage and influences global markets.
In the first part of his speech, the Fed Chairman emphasized the increasing inflation caused by the COVID-19 pandemic and its impact on the country’s economy. Government officials believe that the economy has contracted in recent years, but there is evidence that some sectors are still strong and could contribute to inflationary pressures.
The Fed Chairman used the following statements and emphasized the intention to reduce inflation measured by the Consumer Price Index (CPI) to 2%. Powell stated that there could be potential interest rate increases that could have undesirable consequences for financial markets:
“We are ready to further increase interest rates until it is clearly seen that inflation is following a stable path towards 2%.”
As of the writing of this article, the price of Bitcoin and the crypto market have not yet reacted to Powell’s seemingly hawkish speech. Some analysts on social media point out the aggressive tone from the Fed Chairman, but there were no unexpected statements.
An analyst described the current price movement as a classic “Powell speaking” dynamic and said that the price of Bitcoin remained flat at $26,000. As the analyst mentioned, the price movement seems to indicate that the cryptocurrency is seeking liquidity at higher levels.
According to Deribit, recovery will take time
Uncertainty prevails on lower time frames. A report published by Deribit Insights on higher time frames states that the market structure will need time to recover after a downward aggressive move and increased volatility.
In this sense, horizontal movement is likely in the coming weeks until another macroeconomic event emerges. The report stated:
“Even if the market finds a new range in the coming weeks, it may take some time for it to recover, especially as some of the selling appetite in the front end may have diminished.”
