Powell’s Jackson Hole speech can tell if Bitcoin is spinning this week or dipping.
Rising unemployment rates and weak fuel in employment data are hoping for interest rate cuts speculation in September.
Even Hawkish’s statement could have already been priced, potentially limiting the negative side risk of Bitcoin today.
All eyes on the Crypto Market are locked to today’s Jackson Hole Summit, with US Federal Reserve Chairman Jerome Powell scheduled to speak at 10am ET. His remarks could determine the next big move for Bitcoin and altcoin, as traders squeeze fears about Hawkish’s policy against signs of a weaker economy.
Will this trigger a Bitcoin and altcoin gathering?
Market fears ahead of Powell’s speech
Over the past week, Crypto Market has experienced large sales. Bitcoin slipped from its high, with altcoins continuing. It’s mainly because traders expect Powell to stick to his strict stance on interest rates.
According to the CME Fed Watch Tool, the belief reduced the chances of a September rate to around 69.5%.
However, under the surface another painting is formed. Since the Fed’s last meeting, U.S. employment data has deteriorated. The unemployment rate has risen to 4.2%, unemployed claims are rising, and even previous employment numbers have been revised low.
Inflation leaves room for policy shifts
Despite all these challenges, inflation remains above the Fed’s 2% target. This will give the Fed more room to consider easing its policy if the economic situation continues to deteriorate.
At the same time, corporate bankruptcies have reached the highest level since 2020, indicating that businesses are struggling under tough financial conditions.
What does this mean for Bitcoin and Altcoin?
If Powell implies a rate cut that could be cut in September, analysts say it could cause a significant short aperture, forcing bearish traders to cover their positions and fuel a sharp gathering in Bitcoin at $150,000.
Meanwhile, even though Powell holds the tone of a hawk, much of it has already been devoted to the market. This means that the downsides may be limited.
Experts believe Powell’s Hawkish Tone can drag Bitcoin down to the $110,000 mark.
Federal Reserve Chair Jerome Powell will give his highly anticipated speech at the Jackson Hole Economic Policy Symposium at 10am today.
In November 2021, President Joe Biden renovated Powell in his second term as the Federal Reserve Chairman, confirmed by the Senate in May 2022.
