Bitcoin’s price plummeted towards $20,000 per bitcoin along with Ethereum and other top 10 cryptocurrencies BNB, down more than 10% over the past week.
Now that the Bitcoin and cryptocurrency markets are on the verge of falling below $1 trillion, traders will speak to Federal Reserve Board member Jerome Powell at the Central Bank Conference in Jackson Hole next week in Wyoming. We are preparing for the much-anticipated speech by the Chair.
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“Powell would want to be on the hawkish side,” said Tim Magnuson, chief investment officer at hedge fund Garda Capital Partners. bloomberg, adding that restoring price stability is a top priority. “The flatteners will continue until the Fed stops tightening,” he said.
Chairman Powell is scheduled to speak on Friday, August 26 at 10:00 am ET and will discuss the economic outlook.
The Federal Reserve (Fed) embarked on a program of rate hikes and stimulus cuts late last year to curb inflation, which surged to its highest level in 40 years. The tightening of monetary policy has caused the stock market to crash, and in 2021 he has wiped out about $2 trillion from the red-hot cryptocurrency market, which has soared to a peak of $3 trillion.
This week, St. Louis Fed President Bullard urged another 75-basis-point rate hike at the Federal Reserve in September, while Kansas City President Esther George took a more dovish tone.
“I don’t really see why the Fed would want to delay raising rates until next year,” Bullard said. wall street journalHe added that he believed the Fed “should continue to move quickly towards a level of policy rates that puts significant downward pressure on inflation.”
George, who hosts the Jackson Hole Fed’s policy retreat next week, said on Thursday that policymakers should be aware of the impact of previous decisions on the economy.
“We have done a lot, but I think we have to be very careful that our policy decisions often work behind schedule. bloomberg.
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Market watchers are paying close attention to comments from Fed decision makers who fear the Fed is fighting too hard against inflation and could trigger a recession if it goes too fast.
Sophie Rand-Yates said: “Recession fears are on the rise, aimed at keeping inflation in check as the US Federal Reserve seems insistent on raising interest rates further. are raising more questions about the economy’s ability to recover.” Analysts at brokerage Hargreaves Lansdowne commented in an email.
This week, the Fed’s latest meeting minutes showed officials saw “little evidence” that inflationary pressures are easing. But Federal Open Market Committee (FOMC) participants fear that prolonged rate hikes could hurt the economy.
“Investors are trying to figure out which side to jump between a plethora of conflicting data,” said Danny Hewson, an analyst at investment platform AJ Bell.
“Recent Fed minutes were delivered in a much more dovish tone than is used these days, but the central bank has a firm grasp on inflation even with velvet gloves covering its hands. The possibility of slowing the pace of rate hikes “at some point” has baffled investors, and the latest jobs data will only exacerbate that.”