Bitcoin at $ 113,000, waiting for Powell’s speech
Bitcoin (BTC) shows strength in the $ 113,000 area waiting for the speech that the president of the Federal Reserve of the United States (Fed) will provide this Friday, in the Jackson Hole symposium.
At the time of the publication of this article, Bitcoin is negotiated at 113,400 dollars, 8.8% below its historical maximum (ATH) of $ 124,500, according to the cryptootic price calculator.
The following graph, provided by TrainingView, shows how the price of BTC has moved so far this year:
Investors are aware of what happened as of this Thursday in Wyoming, United States, where Jackson Hole’s symposium will take place. The meeting that brings together central bankers, finance ministers, economists and investors will have Powell as great protagonist, who plans to speak on Friday.
The markets will closely follow each of their words to see if the head of the FED provides signals about the agency’s next decisions, which will have its next meeting in September to define the monetary policy of the United States.
Despite expectations, everything indicates that Powell probably opts for a measured speech, avoiding advancing cuts in interest ratesa position that reduces market confidence and strengthens the bearish vision. Instead, if you advance a cut, the effect would be bullish. Hence a day with high volatility is expected.
That is reflected in the Fedwatch indicator of CME Group: in a week, the probability of a 25 basic points rate cut in September fell from 94.3% to 79.1%, and could continue to fall after talking Powell.
The fact that interest rates are kept high (they are currently in the range of 4.25% to 4.50%) It hits financial markets, including BTC and cryptocurrencies. This is because, when the rates are high, indebtedness is more expensive and there is less liquidity available.
When this occurs, the appetite for risk and investors disappear choose to place their holdings in cash or treasure bonds, considered a safe shelter and offer attractive yields for many in a context of high rates.
