Investors are watching Jerome Powell's statements for any signals of the Federal Reserve's policy softening. This could impact markets, including Bitcoin and NASDAQ, with possible capital rotation into European and Chinese markets.
Impact of Capital Rotation on Bitcoin
Bitcoin (BTC) is experiencing a shift due to expectations of looser monetary policy. This may lead investors to shift funds from risk assets to less liquid areas. Currently, Bitcoin is priced at $82,023, down 1.78% over the past day, but trade volume remains high at $24.18 billion.
Bitcoin Technical Analysis: Weakness or Consolidation?
Technically, Bitcoin indicators show consolidation and potential downside. Bitcoin is currently trading around $85,085, near key moving averages. Resistance for bullish breakouts is at the 100-SMA ($85,080), while a crucial support zone is at the 200-SMA ($89,112). Breaches of current levels could lead to further trend changes.
Conclusion
Powell's statement may be a catalyst for changes in investment strategies, particularly in the cryptocurrency sector. The crypto market might face pressure if Powell extends periods of higher rates. Institutions revisiting their portfolios may lean towards selling Bitcoin, especially if the macroeconomic environment remains uncertain.
The impact of the Federal Reserve Chair's statement could be significant for both cryptocurrencies and global financial markets. The question remains how strongly capital might shift from risk assets to more stable directions.
