The market capitalization of the entire cryptocurrency industry is experiencing an increase of almost 1.5%. Since Tuesday evening, Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE) have been showing fairly low volatility. A trend that comes in a particular context, because the head of the American Federal Reserve (FED), Jerome Powell, will give an annual speech before the world central bank. At this point, it is unclear what direction Powell’s speech will take. Several financial market specialists are anticipating thinking that the President of the FED will want to maintain the rise in interest rates to better face inflation.
The hour of the great monetary mass has come with the speech of Jerome Powell
All of the world’s major financiers are currently united within the framework of the jackson hole symposium. Today will be the long-awaited speech of Jerome Powell, Chairman of the US Federal Reserve (FED). Since yesterday Thursday, conferences and interventions with all the gratin of the world of finance have been linked. In addition to the speeches by finance ministers and economists, it is above all the orientation that the president of the US Federal Reserve (FED) which holds all the attention.
His intervention is expected around 4 p.m. (Paris time). Many questions surround this speech by the President of the FED. Many experts believe that Powell could be firmer on his desire to counter inflation which has a score of 8.5% over the last 12 months. He will have to put an end to any hope of lower interest rates for a new bull market. Especially since the last few days have seen a low bitcoin price volatility and some important atlcoins. Indeed, between Wednesday and Thursday, the king of cryptocurrencies was trading at $21,676, an increase of nearly 0.96%.
Why is this speech important for the cryptocurrency market?
The Jackson Hole Annual Conference is an unmissable event. Every decision is likely to affect the economy of the planet. The many participants epilogue on the various economic issues of great importance. Some bosses also take advantage of the opportunity offered to communicate major events or important initiatives.
Powell’s statement is crucial, as we will want to see if it continues or breaks with his speech at the FED meeting last July. If it is a continuation, it would take investors expecting a tough tone by surprise.
The content of his remarks will, in any case, have an impact on the value of cryptocurrencies. I have to say that the crypto industry is closely linked to equity markets. A detailed speech from the FED boss would be the trigger to limit crypto volatility and accelerate the return of a bull market.
In sum, August 25 marks an important date for investors around the world. Powell’s speech to the world’s bankers is of particular importance, even more than that of July 2022. Indeed, it comes after the decision President Joe Biden to write off $10,000 student loan debt. This cancellation only affects people who earn less than $125,000 per year. A decision that changes everything for the FED, it will have to be more incisive in order to counter inflation.
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