The Jackson Hole Economic Symposium, which concludes tomorrow, keeps investors suspenseful before a speech by US Federal Reserve President Jerome Powell.
His intervention is scheduled for Friday, August 22nd at 10am (East of the US). Generate expectations regarding possible signals regarding interest rate futuresfactors that have influenced recent fluctuations in Bitcoin (BTC) prices.
The currency reached a historic up to $124,000 last week, but failed to support it, falling at $112,000, reflecting market uncertainty.
In this regard, Powell can provide clues as to whether the Fed plans to cut interest ratescurrently in the range of 4.25% to 4.5% as part of a strategy to control inflation.
Last year, at the same event, Powell announced it was near a decline in percentage after the Fed increased to counteract the inflation generated by the pandemic. Similar signs could encourage investors. This is because lower interest rates reduce the costs of liabilities and encourage investment in assets that are considered “risk.” Like Bitcoin and other cryptocurrencies, it usually promotes its demand and price.
However, not everything is optimistic. Tom Di Galoma, managing director of Mishler Financial Group, warns that Powell can adopt a cautious tone and avoid committing to immediate reductions. To maintain flexibility, The Fed president can condition his September decision on his next employment and inflation report, which will be released early next month.
A balanced discussion Without clear signs of cutouts, bearish pressure on Bitcoin will increaseHigh charges are in favor of safer investments, such as treasure debts that provide better yields and divert capital in unstable assets, as explained in Cryptonoticia’s education section.
Meanwhile, Bitcoin volatility was shot. According to Volmex’s implicit volatility index, it rose to 46% per year compared to the 9% recorded on August 9th.
This increase reflects market uncertainty before Powell’s speech. Fallcoin’s price drop could worsen if the Fed president fails to meet interest rate cuts expectationsaffects other cryptocurrencies and financial markets in general.
