Here is how Bitcoin may recoup $23,000 ahead of major Fed event
The last week of August is marked by implicit but relatively encouraging signs of positivity on the crypto market. Bitcoin went back above the $21,500 level. If we do not get negative news, then after the retest of $21,500, we can expect growth to $23,000 locally. That said, the S&P500, whose real time smoke alarm is Bitcoin as we found out from Arthur Hayes’ latest essay, is trading near the important 4,180-4,200 zone.
Independent digital, but still an economy
Unfortunately or fortunately, the layout of the crypto market is determined not only by technique but also by fundamentals, especially when important events like tomorrow’s speech by the Fed head at the annual symposium in Jackson Hole are on the horizon.
Powell’s speeches at this event are much more informative than the Fed’s usual press conferences. This year, the markets are laying down two scenarios for the speech. The basic version focuses on the fact that inflation is incredibly high, but the Fed will fight it in an effort to maintain economic growth. In the second, negative one, Powell admits that the Fed has to raise rates heavily to combat rising prices and that the U.S. economy is likely to suffer from this. With such a turn of events, the fall of quotes is inevitable.
Given the functionary’s previous speeches, one would most likely expect a demonstration of confidence that the regulator has the situation under control. In this case, if the speaker’s speech is sufficiently persuasive, we can expect a temporary continuation of the positive trend.