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Crypto Guide

Bitcoin (BTC) in the green after Jerome Powell’s speech?

sat 27 August 2022 ▪ 21:00 ▪

5
min reading – per
Cédrick Aimé GUELANG OFALABEN

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 US Federal Reserve (FED), Jerome Powell, will give an annual speech to the world central bank. At this point, it is unknown what direction Powell’s speech will take. Several financial market specialists anticipate thinking that the FED President will want to keep interest rates rising to better cope with inflation.

Speech by Jerome Powell, the Chairman of the FED

The time for the great monetary mass has come with Jerome Powell’s speech

All the major financiers of the world are currently gathered in the framework of the Jackson Hole Symposium. Today will be the long-awaited speech of Jerome Powell, the chairman of the US Federal Reserve (FED). Since yesterday Thursday, conferences and interventions with everyone from the world of finance have followed one another. In addition to the speeches of the Finance ministers and economists, it is above all the orientation that the President of the US Federal Reserve (FED) who gets all the attention.

His intervention is expected around 16 hours (Paris time). There are many questions surrounding this speech by the FED Chairman. Several experts believe that Powell may be firmer on his willingness 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 an interest rate cut for a bull market again. Especially since the last few days have made it possible to observe a low volatility of the bitcoin price and some important atlcoins. Indeed, between Wednesday and Thursday, the king of cryptocurrencies traded at $ 21,676, an increase of almost 0.96%.

Why is this speech important for the cryptocurrency market?

There Jackson Hole Annual Conference is an unmissable event. Every decision is likely to affect the economy of the planet. The many participants discuss 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, because we will want to see if it is a continuation or a break from his speech at the FED meeting last July. If it is part of the continuity, it would take by surprise investors who expect a firm tone.

The content of his remarks will, in any case, have an impact on the value of cryptocurrencies. It must be said that the crypto industry is closely related to the equity markets. A detailed speech by the FED boss would be the trigger to limit the volatility of cryptos and accelerate the return of a bull market.

Conclusion

In short, 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 so than that of July 2022. Indeed, it comes after the decision from US President Joe Biden to cancel student loan debts of $ 10,000. This cancellation only applies to 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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Cédrick Aimé GUELANG OFALABEN avatar
Cédrick Aimé GUELANG OFALABEN

PhD student in financial law and experienced SEO web writer, Cedrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the blockchain revolution on a daily basis for a better democratization of DeFi.

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