Bitcoin Price Rejects Key Resistance, But Could Fed’s Powell Send Price Surging on Friday?
Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...
The Bitcoin (BTC) price rejected strong resistance in the form of its 50DM around $61,300 on Thursday, subsequently falling back to around $60,000, despite new economic data coming out that pushes back on the idea that the US economy is nearing a recession.
As the Service Sector continues to expand in the United States, the potential to steer clear of a recession remains promising. Today, the service PMI once again registered at 55.
It remains imperative for the US Consumer to sustain their spending habits, as any deviation from… pic.twitter.com/ISOwQbFBdE
But Fed Chair Jerome Powell is expected to signal an incoming series of interest rate cuts beginning next month in a speech tomorrow. Could this send the Bitcoin price vaulting higher?
Fed Chair Jerome Powell is expected to signal the start of a series of 25 bps rate cuts starting next month at tomorrow’s Jackson Hole speech.
Given that market’s are currently pricing in a modest 25% probability of 50bps rate cut next month, that could be a marginal disappointment to some traders betting on bigger and faster rate cuts.
The Bitcoin price could therefore see some marginal downside as bets on a 50bps rate cut are wound down.
But the size of the September rate cut won’t be the main point of focus.
Rather, the Fed’s longer-term plans will be. I.e. how far and fast will the Fed cut interest rates in the coming years.
Markets are currently pricing around 125bps worth of easing by the end of 2025, per CME data.
Powell’s remarks will be closely watched as they could impact these longer-term
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