BTC’s Price Still Low As Fed Chair’s Speech Draws Near 

Today, the volatility of the crypto market has been low as it seems the “bullish trend” has ended. Meanwhile, investors are gearing up for the speech that would hold in Jackson Hole, Wyoming.

The speech, which will be held on August 26th, will have Jerome Powell, the Chair of the US Fed, address the participants. The Jackson Hole symposium is an international central banking conference which is held annually. 

The financial markets anticipate Powell would underscore the ongoing necessity for substantial interest rate hikes to combat inflation, despite the possible drawbacks of growth in the economy.

However, the fact that there has been an increase in panic selling in Bitcoin in the days before the event raises the possibility that the market could have already factored this assumption into its prices.

In the early hours of August 25th, the price of BTC in the US was trading at about $21,676. This is a price increase of 0.96% in the past 24 hours. According to data from CoinMarketCap, there has been a price drop of 7.79% in the past week.

The Jackson Hole Symposium

Many believe the Jackson Hole conference may act as a positive catalyst for the crypto and stock markets as there are signs that inflation might increase. Unfortunately, volatility is anticipated no matter what takes place. 

Meanwhile, the recent break has led to a “drop in volatility,” which suggests that a more significant price shift will soon come. However, bears still hold the near-term technical advantage.

This symposium is usually held every year with various participants in attendance. They include academics, finance ministers, central bankers, and major players in the financial market from across the world. 

At this gathering, Jerome Powell would discuss economic policies. Meanwhile, reports today noted that US President Joe Biden wants to pardon all student loan debts of over $10,000.

However, this would only apply to those earning below $125,000 per annum. As a result, many expect inflation to increase in the country together with the 10-year treasury yield.

Therefore, the US Federal Reserve would have to make a tough decision to reduce the rising inflation. Amid the threat of more inflation, Harry Dent, an economist, referred to cryptocurrency as the ‘next big thing.’

However, he believes the market’s growth would be similar to the dot-com bubble. This bubble saw the price of major stocks, such as that of Amazon, falling before increasing to new highs.