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What did Powell say that the cryptomarket influenced?
FED -President Jerome Powell has adopted a cautious ‘wait -and -see’ approach that made briefly well -founded markets.
How did analysts respond to Powell’s position?
Experts remained bullish in the medium term, despite uncertainty in the short term.
Bitcoin [BTC] Slipped to $ 111k after the chairman Jerome Powell -Speech from Fed, but jumped above $ 112k from the moment of writing. The rest of the market posted mixed results.
Source: Coinmarketcap
In rack At the economic prospects on September 23, Powell said that employment and the risk of inflation have risen, reducing the interest rate last week.
“In recent months it has become clear that the risk balance has shifted, so that we can bring our policy position closer to Neutral during our meeting last week closer to Neutral.”
But he emphasized ‘uncertainty’ about inflation, the challenging balance act, and adopted a cautious tone, as he added,
“But the uncertainty surrounding the inflation path remains high. We will carefully assess and manage the risk of higher and more persistent inflation.”
Analysts respond to Powell’s speech
For Matt Mena, a crypto strategist in 21shares, Powell’s ‘wait -and -see’ approach could cause volatility around important macro data releases. In an e -mail statement to ambcrypto, Mena said,
“With the ratings that have been stretched and use, markets can continue to trade in in Bursts of volatility on incoming data.”
As such, the unemployment claim report reported on 25 September and the Core PCE (Price Consumer Index) Index data on Friday can cause price deviations.
Shawn Young, chief analyst at Mexc Exchange, added that the market was already careful with the aforementioned macrory data.
Young noted that this could add liquid pressure. But he added that such a movement would be crucial for a healthy rebound, especially after the recent $ 1.7 billion wreck. He told Ambcrypto that,
“Although the liquidations may have introduced pain in the short term, they are often a sign of a healthy re -balancing, especially given the scale of the current one.”
Mena also shared a similar positive view of the medium term and added,
“With foam -driven by the September reduction of the FED and the expectations of two more cuts this year (91% opportunities for another in October), this reset looks more like healthy Hercalibration than on a trend shift.”
Source: CME Fedwatch Tool
Interesting is that Fundstrat Cio Tom Lee was also Bullish, emphasize Powell’s attitude towards the appreciation of the stock market was not a ‘ominous sign’.
At the time of writing, however, BTC recovered $ 112k and could retarets and to one Quotation again.
But Young warned that a persistent dip under $ 112k could drag it to $ 108k. In general, caution could rule in the short term, but analysts remained bullish in the medium term.