Markets
Fed’s Jerome Powell Delivers Crucial Message for Crypto Markets
Tomiwabold Olajide
Jerome Powell delivered a crucial message that has significant implications for cryptocurrency markets
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Federal Reserve Chairman Jerome Powell delivered a crucial message that has significant implications for cryptocurrency markets.
Powell spoke on a panel that included European Central Bank President Christine Lagarde and Brazilian Central Bank President Roberto Campos Neto.
Powell said that the Federal Reserve has made “good progress” in its ongoing fight against inflation. However, Powell stressed the need for more evidence of sustained progress before considering any interest rate cuts.
The comments come as markets keep a close eye on the Fed as inflation appears to be slowing and other central banks such as the ECB begin to gradually cut interest rates.
Earlier this year, investors had anticipated at least six quarter-point rate cuts from the Fed. The market price has been adjusted to reflect two cuts, one in September and the other before the end of the year.
Cryptocurrency market reacts
Cryptocurrency markets, known for their sensitivity to macroeconomic indicators, have been particularly attentive to Powell’s remarks. Bitcoin has fallen 3.36% in the past 24 hours to $60,349.
Several cryptocurrencies are also trading in the red, with losses ranging from 2% to 13%. After Powell’s remarks on the economy, sentiment seemed to worsen.
Markets have somewhat reduced the odds of a rate cut at the Fed’s September Federal Open Market Committee (FOMC) meeting, which remain at around 65%.
Moving forward to Bitcoin Price action, a break below $58,000 to $60,000 would result in a significant amount of short-term holders (STHs) losing money and trading below the 200-day moving average, according to Glassnode. Price activity between $60,000 and $64,000 continues the market’s current sideways hesitation pattern.
About the author
Tomiwabold Olajide
Tomiwabold is a seasoned cryptocurrency analyst and technical analyst. He focuses heavily on cryptocurrency research, conducting comprehensive price analysis, and predicting exchange market trends. Tomiwabold graduated from the University of Lagos.