The cryptocurrency market shows stability in anticipation of US Fed Chair Jerome Powell's speech at Jackson Hole.
Market Ahead of Fed Chair's Speech
Bitcoin has fallen 0.74% over the last 24 hours, trading at $112,018. Ethereum also experienced a minor decline of 0.1% to $4,204.
Analyst Opinions on Potential Outcomes
Vincent Liu, Investment Director at Kronos Research, stated that the market expects a 'hawkish' message from Powell. 'A dovish surprise could trigger a market rally, but hawkish rhetoric could increase selling pressure,' Liu noted. He also believes that if Powell doesn't provide any guidance on interest rates, the market will enter a consolidation period. BTC Markets analyst Rachael Lucas indicated that Bitcoin could see an additional correction of up to 30% if Powell adopts a hawkish tone.
Future of the Crypto Market Under Current Conditions
Wall Street anticipates a 25 basis point rate cut in September, with a probability of 74.4%. However, recent data presents mixed expectations. A lower-than-expected CPI and an increase in jobless claims suggest that inflationary pressures may be easing, but a higher PPI and persistent services inflation are raising concerns. Analysts suggest that the direction of the crypto market in the coming period will depend on US inflation data, Fed meetings, and ETF inflows.
The cryptocurrency market remains under pressure from uncertainty as it awaits Jerome Powell's statements, highlighting the importance of macroeconomic indicators in guiding price movements.
