Fed Chairman Jerome PowellCryptocurrency markets did not respond well to ‘s speech. Bitcoin and the rest of the crypto market continued to show strong gains amid positive inflation data, but the conversation turned things around.
In Jerome Powell’s speech in Jackson Hole, the Fed took a rather aggressive stance. As a result, bitcoin It has lost nearly 6% in value in the last 24 hours. It is currently trading at $20,200. Ethereum’s price is also down close to 10% while trading at $1,503. It frequently declines below the $1500 level.
The market has reacted to two very different forces at play. On the one hand, the PCE data turned out to be less than expected. This represents the second consecutive data showing the cooling of inflation after the CPI data for August. Markets reacted positively to both of these data.
The expectation was that the Federal Reserve would abandon its policy of quantitative tightening and rate hikes.
However, even Minneapolis Fed chairman Neel Kashkari, known for his key figures and softer stance, took an aggressive stance by surprise. Jerome Powell has also clearly taken a tough stance. He explained that fighting inflation is the main goal of the Fed. It warned households and businesses of impending problems.
The market reacted sharply to this talk and fell significantly. The S&P 500 also fell more than 3%. Experts believe Powell’s words are a tool to curb consumer and business enthusiasm. If so, they seem to have been distinctly successful.
Lark Davis, one of the well-known names in the crypto world, shared that Powell’s 10-minute speech wiped out about a trillion dollars from stocks and crypto. However, Michael van de Poppe, CEO of Eight Global, was a little more hopeful.
According to Van de Poppe, the Fed cannot continue its hawkish policy. If so, Bitcoin and Bitcoin as future inflation data reveal cooling inflation. Ethereum can rise again.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.