In the last 24hrs, the global crypto market cap has plummeted by 1.28% as the first two cryptocurrencies Bitcoin and Ethereum have dropped by 0.75% and 2.67% respectively.
However, to understand further the crypto market’s move, today’s Federal Reserve chair, Jerome Powell will play an important role.
Jerome Powell is set to give his Jackson Hole speech, which will play an important role in drafting the central bank’s economic agenda for the year 2022. Jackson Hole is the one that will host the annual Federal Reserve meeting, where Powell’s speech will be live at 10: 00 AM ET or 7: 30 IST.
In the month of June, the Federal Reserve had hiked the interest rates by 75 bps due to which the global crypto market had taken a steep fall.
Market Participants Take
This speech will be important because the central bank is the one that controls the inflation rate and the meeting is set to lay down the bank’s agenda.
On the other hand, crypto analyst Michael van de Poppe is also of the opinion that Powell’s speech will largely impact Bitcoin. Whereas, Blue Line Future’s chief market strategist, Phil Streible views the speech will pull down stock markets and the speech will decide the whole market’s movements.
Hence, if Powell agrees with other members and approaches strongly against inflation, then the market will react negatively. However, a few believe that the speech will give traders and investors clarity towards market sentiments, as this will know Bitcoin’s moment.
It’s been a while that Bitcoin price action is stuck between the range of $21k and $22k, hence the meeting might either push or pull down the currency further,