When Powell speaks at Jackson Hole, does Bitcoin volatility suddenly resurface?

As of the time of this writing, #bitcoin has been fluctuating more as the Jackson Hole event draws nearer, hovering around $26,000. The Fed Chair takes centre stage and has the attention of the world as he affects the markets.

As Jackson Hole occurs, the price of bitcoin changes.

The US Fed Chair focused on rising inflation brought on by the COVID-19 outbreak and its effects on the nation's economy in the first section of his address. Government authorities assert that the economy has declined in recent years, yet data suggests that some industries are still robust and might help drive up inflation.

The Fed Chair made the following remarks, highlighting plans to lower inflation to 2% as determined by the Consumer Price Index (CPI). Powell warned that more prospective interest rate increases may have unanticipated effects on the financial markets.

Up until inflation is clearly headed in the direction of the 2% target, we are willing to hike interest rates even more.

As of this writing, neither the Bitcoin price nor the cryptocurrency market had responded to Powell's seeming hawkish remarks. Although the Fed Chair's words weren't anticipated, several experts are calling out their confrontational tone on social media.

One expert referred to the sideways movement of the Bitcoin price from $26,000 as a classic "Powell is talking" phenomenon. The expert noted that when the cryptocurrency seeks liquidity at higher levels, the price movement appears to be tilted upward.

Over short timescales, uncertainty still reigns supreme. According to a research released by Deribit Insights, the market structure will require time to recover on longer time frames after an aggressive move to the negative and rising volatility.

From that perspective, unless another macroeconomic event enters the picture, sideways movement is inevitable over the ensuing weeks. From the report:

Even if the market finds a new range in the coming weeks, it could take some time for this to recover since some of the desire for selling vol may have diminished, especially on the front end.