As an experienced financial analyst, I closely follow the statements made by central bank chairs like Jerome Powell because they have a significant impact on various markets, including crypto. Powell’s recent remarks at the panel with Christine Lagarde and Roberto Campos Neto indicate that the Federal Reserve is not yet ready to reduce interest rates despite some progress in fighting inflation.
As a crypto investor, I closely follow the announcements made by the Federal Reserve, and the latest message from Chair Jerome Powell was particularly noteworthy. His comments carry substantial weight for the crypto markets.
I had the opportunity to participate in a panel discussion alongside esteemed figures such as European Central Bank President Christine Lagarde and Brazil’s Central Bank Governor Roberto Campos Neto.
As a researcher studying economic policy, I’ve noticed Powell making remarks about the Federal Reserve’s progress against inflation. He expressed satisfaction with the significant strides made so far but underscored the importance of waiting for definitive proof of lasting improvement before contemplating any adjustments to interest rates.
Markets closely monitor the Fed’s actions as inflation seems to decelerate, while central banks such as the ECB consider reducing interest rates incrementally.
This year, it was widely expected among investors that the Federal Reserve would reduce interest rates by a quarter point no less than six times. However, current market predictions indicate only two such reductions have occurred so far. The first took place in September, while the second is projected to happen before the year comes to an end.
Crypto market reacts
The cryptocurrency market, which is notoriously responsive to broader economic signals, has closely monitored Powell’s recent comments. As a result, Bitcoin experienced a decline of 3.36% within the past day, reaching a price of $60,349.
Multiple cryptocurrencies have seen price declines, varying from a 2% to 13% decrease, after Powell’s economic comments caused a shift in investor sentiment.
The probability of the Federal Reserve implementing a interest rate reduction during their September meeting at the Federal Open Market Committee (FOMC) has decreased slightly. Currently, this possibility is estimated to be approximately 65%.
Moving forward with Bitcoin’s price trends, a dip below the $58,000 to $60,000 mark could lead to substantial losses for short-term holders (STHs), causing them to sell at prices under the 200-day moving average as reported by Glassnode. The Bitcoin market remains uncertain between the ranges of $60,000 and $64,000.
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2024-07-03 14:50