Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium on August 22 attracted investor attention, keen on future monetary policy. Powell's remarks, indicating a softer approach on interest rates, influenced financial markets and cryptocurrencies, including Cardano (ADA).
Powell's Speech and Its Market Impact
Jerome Powell acknowledged risks to the labor market and mentioned the potential for interest rate cuts in the near future. This shift in stance towards easing rates created a more favorable environment for cryptocurrencies and risky assets. A weaker dollar typically boosts digital assets like ADA.
Market Reaction to the Speech
Markets reacted to Powell's speech immediately: the dollar weakened, U.S. stocks rose, and cryptocurrencies followed suit. The probability of a rate cut in September jumped from 75% to 89%. ADA's price registered a 3.5% rise, confirming its connection to macroeconomic events.
Cardano Price Forecast for the Next 30 Days
There are three scenarios for ADA's price in the coming month:
* **Bullish case**: If Powell’s comments on rate cuts materialize, ADA could break through the 1.00 level and reach towards 1.12 if supported by broader crypto strength. * **Neutral case**: If markets remain uncertain until the Fed's announcement, ADA may oscillate between 0.85 and 1.00. * **Bearish case**: If the Fed shifts its dovish tone or economic shocks occur, ADA may drop below 0.85 and test 0.70 again.
Jerome Powell's speech at Jackson Hole has become a turning point for the cryptocurrency market. Signals about potential rate cuts open up avenues for renewed liquidity flows into risk assets. Investors will closely monitor news and economic data waiting for confirmation or clarification of the Fed's policy.
