What to Expect from Powell?

In recent weeks, the Fed entered a new phase by cutting its policy rate by 25 basis points (0.25%). Following this decision, attention has turned to whether further rate cuts will follow.

Economists and market analysts expect Powell to emphasize the following points in today’s speech:

• Data-driven approach: The Fed’s future decisions will depend largely on inflation and employment data.
• Inflation risk: Powell may stress that persistently high inflation still poses a threat.
• Labor market: Weak labor data could give the Fed room for additional rate cuts.

According to analysts, Powell is unlikely to adopt a fully hawkish stance, but may speak in a tone described as “cautiously dovish.”

Key Levels for Bitcoin (BTC)

Ahead of Powell’s remarks, Bitcoin is fluctuating between major support and resistance levels.

• Current Status: BTC has rebounded from strong support at $111,400 and is now testing critical resistance around $113,000.

• Bullish Scenario: If Powell signals further rate cuts or adopts a dovish tone, Bitcoin could climb toward the $114,000 – $115,500 range.
• Bearish Scenario: If Powell takes a more neutral or cautious stance, BTC may retreat back to the $111,400 support. A break below this level could trigger deeper declines.

Crypto traders are paying close attention to Powell’s wording, particularly references to interest rates, inflation, and economic growth.

Altcoin Market Outlook

Alongside Bitcoin, the altcoin market is also at a critical juncture.

• The total market capitalization (excluding BTC and ETH) is currently trying to hold at a key trendline.
• If these support levels hold, altcoins could recover and move toward the all-time high market cap of $1.16 trillion.
• However, if the trendline breaks, the $920 – $960 billion range could come into play for altcoins. This scenario would likely create strong selling pressure across the market.
• Investors note that in the short term, the movements of major altcoins—including Ethereum (ETH)—will remain closely tied to Bitcoin’s direction.

Why Are Markets So Focused on Powell?

The Fed’s monetary policy decisions have a direct impact on crypto markets. A low-interest-rate environment typically:

• Increases demand for risk assets,
• Supports liquidity,
• Strengthens bullish trends in Bitcoin and altcoins.

On the other hand, if rate cuts remain limited or if the Fed delivers cautious messages, risk appetite can weaken, creating selling pressure in crypto assets.

Today’s Speech Will Set the Tone

Powell’s speech today will not only provide clues about the Fed’s monetary policy path but will also play a major role in shaping the short-term direction of Bitcoin and altcoins.

For crypto investors, the key levels to watch are:

• Bitcoin: $111,400 support, $115,500 resistance
• Altcoin Market: $1.16 trillion target, $920 billion risk zone

All eyes are now on Powell. The tone of his speech will determine whether the crypto market sees a new rally or a correction in the coming days.

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The post Jerome Powell to Speak: Will the Crypto Market Rise or Fall? appeared first on Coin Engineer.

The speech will take place at 17:00 (UTC+3) at Jackson Lake Lodge, Wyoming, and is expected to be closely watched by global markets.

Previous Speeches and Impacts

Powell’s Jackson Hole remarks have historically provided key insights on monetary policy, inflation, and employment:

• 2018: Emphasized gradual rate hikes → four rate increases that year.
• 2019: Highlighted trade and growth uncertainties → three rate cuts followed.
• 2020: Pandemic-era strategy shift → maintained 2% average inflation target.
• 2021: Claimed inflation would be “transitory” → later criticized.
• 2022: Called for “painful” high rates → aggressive hikes continued.
• 2023: Noted progress on inflation → rates held at 5.25%-5.50%.
• 2024: Inflation risks declined → signaled a rate cut in September by 50 bp.

Expectations for Today

Markets will closely watch Powell’s speech for indications on whether the rate-cut cycle will continue. Central bankers and investors alike will seek clues about the Fed’s next steps from his remarks.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

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The post FED Chair Powell’s Remarks Could Shape Markets Today appeared first on Coin Engineer.

The Importance of Jackson Hole and Fed Powell’s Messages

Jackson Hole is known as an important symposium that brings together central bank leaders from around the world. This year, Powell’s speech here may contain clues, especially about the Fed’s future monetary policy strategy. In the past, Powell has given clear and strong messages about fighting inflation and interest rates. This year, the downward trend in inflation and weak employment data lead to the expectation that Powell’s tone may be softer.

Might interest you: Crypto Market Awaits FOMC Minutes and Fed Chair Powell’s Speech

Morgan Stanley’s global chief economist Seth Carpenter stated that all attention will be on Jackson Hole this week and that he expects Powell to focus on the Fed’s medium-term strategy. One of the most curious topics in this symposium is what kind of policy the Fed will follow in September regarding interest rates.

Mohamed El-Erian’s Views

Famous economist Mohamed El-Erian emphasized that Jackson Hole offers a golden opportunity for Powell. El-Erian stated that Powell should speak clearly about the economic and political situation in his speech. Otherwise, he warned that uncertainty and fluctuations in the markets could increase.

These developments may cause increased volatility in the cryptocurrency market. Powell’s messages will shape investors’ expectations about the Fed’s future monetary policy, which may create sudden movements in the prices of crypto assets.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Crypto Market Waits For Fed’s Statement This Week – 20 August 2024 appeared first on Coin Engineer.