Bitcoin Falls Ahead of Powell’s Jackson Hole Speech. Here’s Where Cryptos Could Go.
Bitcoin and other cryptocurrencies dropped in anticipation of Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Economic Symposium.
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Posted 8/25/2023, 9:41:00 AM
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Bitcoin's price chart resembles the stock market in the 1930s, suggesting that the cryptocurrency could be heading towards a major drop, according to Bloomberg's senior commodity strategist, Mike McGlone.
Bitcoin (BTC) faces uncertainty and fear in the market as it struggles to recover from a 10% crash, with short-term holders experiencing increasing unrealized losses and on-chain transactions setting multiyear highs. Traders are cautious about the outlook, but historical patterns and upcoming events, such as the Jackson Hole Economic Symposium, may provide opportunities for recovery.
Bitcoin drops below $26,000 as market awaits central bankers' meeting at Jackson Hole, BNB hits lowest level in over a year due to regulatory and legal pressure, and Australia delays decision on central bank digital currency (CBDC) due to unresolved issues.
Bitcoin price is expected to face volatility following Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Symposium, with the cryptocurrency market reacting negatively to previous symposiums and a majority of officials favoring further interest rate hikes, potentially increasing the selling pressure on BTC.
Cryptocurrencies, including Bitcoin and Ethereum, experienced a rise in value as investors anticipated the Federal Reserve's annual meeting and Bitcoin attempted to reach $30,000.
The market reactions to Federal Reserve chiefs' speeches at the annual Jackson Hole Economic Symposium are typically more muted than the significant drop experienced last year, according to Bespoke Investment Group's analysis, with the S&P 500 only falling 2.01% on average during the first two days of the symposium and recording an average gain of 0.3% during the event over the past 20 years.
Bitcoin's price dropped below $26,000, losing most of its gains from the previous day, as both cryptocurrencies and traditional markets experience a significant downtrend.
The Jackson Hole monetary policy conference, featuring a speech from Federal Reserve chair Jerome Powell, suggests that the era of low inflation may be over due to factors such as supply-chain failures, fiscal boosts, deglobalization, and onshoring. The potential for Powell to discuss inflationary risks and rate hikes could negatively impact the S&P 500.
Jim Cramer anticipates that Federal Reserve Chair Jerome Powell's speech at Jackson Hole may signal further interest rate hikes, potentially causing stocks to decline, but advises investors to keep strong companies like Apple and Nvidia and seek opportunities for discounted stocks.
Bitcoin prices experienced a sudden drop last week, with analysts attributing it to large liquidations of perpetual futures and a report that SpaceX had sold the cryptocurrency, while industry insiders have mixed opinions on the impact of spot bitcoin ETFs and Coinbase's investment in Circle.
Fed Chair Jerome Powell's speech at the Jackson Hole symposium is expected to introduce volatility in both traditional markets and the crypto market, with the direction of the volatility depending on Powell's hawkish or dovish tone.+
Investors brace for Federal Reserve Chair Jerome Powell's keynote address at the annual central banking symposium in Jackson Hole, which is expected to provide a sobering assessment of the long-term interest rate trajectory and has led to the dollar soaring and the euro/dollar exchange rate plunging to its lowest level in over two months.
U.S. Federal Reserve Chairman Jerome Powell stated that restrictive monetary policy will continue until inflation slows, and the central bank is prepared to raise rates cautiously; the price of Bitcoin briefly dipped before recovering, while traditional markets saw modest gains.
Altcoin Pepe has seen a significant drop against Bitcoin, leading crypto strategist Credible Crypto to warn of potential similar price declines for other altcoins, while also predicting a rise in Bitcoin's dominance in the market.
Fed Chairman Jerome Powell indicated at the Jackson Hole Symposium that he is prepared to raise rates further, disappointing investors hoping for a more dovish outlook, while weak economic data suggests that inflation may continue to fall due to a softening economic picture in Europe and China.
Bitcoin briefly dipped below $26,000 after US Federal Reserve Chair Jerome Powell hinted at the possibility of raising interest rates again, but has since rebounded to over $26,000.
Federal Reserve Chair Jerome Powell warned that inflation and economic growth remain too high and interest rates may continue to rise and remain restrictive for longer, while U.S. stocks rebounded and European markets closed slightly higher. Meanwhile, U.S. Trade Representative Katherine Tai highlighted China's dominance in rare earth metals and the vulnerability of U.S. supply chains. Grocery delivery company Instacart filed paperwork for an IPO, and upcoming PCE and jobs data will provide insights into the Fed's rate decisions. Powell's ambiguous remarks at the Jackson Hole symposium led markets to focus on the prospect of a stronger economy rather than interest rate warnings.
Bitcoin could experience a major market correction in September, potentially dropping by more than 16% based on historical performance and predictions by crypto analyst Benjamin Cowen.
Crypto analyst Benjamin Cowen believes that Bitcoin is likely to follow its historical bearish price action seen in pre-halving years and predicts that the cryptocurrency will remain within a range of $12,000 to $35,000 for the rest of 2023.
Crypto prices, including bitcoin and major tokens, experienced a decline due to profit-taking and a general risk-off environment, erasing gains from Grayscale's court victory, with prices weakening ahead of the U.S. jobs report release.
Bitcoin and other cryptocurrencies experience a decline as the Securities and Exchange Commission slows down the decision process for crypto exchange-traded funds.
Bitcoin and other cryptocurrencies rose on Friday, but trading volumes remained low, indicating a lack of wider interest in the crypto space.
Bitcoin and other cryptocurrencies experienced a rise prior to the Federal Reserve's decision on interest rates, signaling possible volatility in the market.
Bitcoin and other cryptocurrencies experienced a decline after the Federal Reserve decided not to raise interest rates, suggesting that significant gains may not be anticipated in the near future.
Ark Invest's recent report highlights the recovery of Bitcoin's realized capitalization, the decline in liquidity and trading volumes, the recent increase in volatility, and the optimistic long-term outlook for the cryptocurrency.
The Federal Reserve's decision to maintain interest rates and raise its long-term forecast for the Federal Funds Rate surprised many market participants, causing a slight pullback in the stock and cryptocurrency markets while highlighting the need for investors to focus on the actual health and viability of companies and the utility of the crypto ecosystem. Additionally, the article speculates on the impact of the U.S. Securities and Exchange Commission's ruling on Bitcoin spot ETF applications and the potential for cryptocurrency to become a mainstream alternative investment.