How Will Jerome Powell Speech Affect Bitcoin? Disappointment Possible
Today’s Jackson Hole developments could significantly impact the Bitcoin (BTC) market.
Experts are looking for clues about the Federal Reserve’s monetary policy direction, focusing on today’s Jackson Hole meeting, which could affect the prices of risky assets like Bitcoin.
“The downward revision in US nonfarm payrolls data, indicating a weak labor market, triggered concerns that the Fed would delay rate cuts, which led to a sell-off. These concerns were alleviated by the July FOMC minutes indicating that some policymakers are open to rate cuts, suggesting a more dovish stance balancing inflation and employment targets,” QCP Capital said.
“Attention is now focused on Fed Chair Powell’s Jackson Hole speech. While markets are focused on rate cuts, unexpected economic data could have a significant impact. We prefer core hedges that capture upper-band gains,” QCP added.
Powell is expected to signal a move to lower borrowing costs next month. Such a move has historically been a positive move among traders because cheap access to money typically spurred growth in riskier sectors.
Disappointment possible
But some are taking a cautious approach.
“Risk markets could be disappointed that Powell may want to give them some leeway against the four cumulative cuts priced in by the end of the year,” said Augustine Fan, a director at SOFA.
