Federal Reserve chairman Jerome Powell spoke about FOMC’s future goals at the annual Jackson Hole symposium on Friday. He said that FOMC’s overarching directive remains to bring inflation back down to 2%, which “will likely require maintaining a restrictive policy stance for some time.” After a preliminary pump, Bitcoin’s price swung wildly following his comments. Trading at ,234 at 12:30 UST on Friday, Bitcoin quickly pumped to ,819 by 13:05 UST – just an hour before Powell’s comments. Bitcoin then dipped to ,433 as the chairman delivered his remarks. It then bounced back up again to 748 by 14:09, and back down to ,315 at writing time. Bitcoin’s price has a history of seeing short-term volatility when Powell speaks – yet not always in a predictable
Topics:
Andrew Throuvalas considers the following as important: AA News, Bitcoin (BTC) Price, BTCEUR, BTCGBP, btcusd, btcusdt, federal reserve
This could be interesting, too:
Wayne Jones writes Former FTX Exec Agrees to Transfer .9 Million Bahamas Property in Plea Deal
Wayne Jones writes Dutch Authorities Arrest Suspect in ZKasino Online Gambling Scam
Andrew Throuvalas writes Costly Mistake: Victim Loses Million In Address Poisoning Scam
Chayanika Deka writes BitMEX Founder Arthur Hayes Sees Bitcoin’s Price Slump as Market Cleansing
Federal Reserve chairman Jerome Powell spoke about FOMC’s future goals at the annual Jackson Hole symposium on Friday. He said that FOMC’s overarching directive remains to bring inflation back down to 2%, which “will likely require maintaining a restrictive policy stance for some time.”
After a preliminary pump, Bitcoin’s price swung wildly following his comments.
- Trading at $21,234 at 12:30 UST on Friday, Bitcoin quickly pumped to $21,819 by 13:05 UST – just an hour before Powell’s comments.
- Bitcoin then dipped to $21,433 as the chairman delivered his remarks. It then bounced back up again to $21748 by 14:09, and back down to $21,315 at writing time.
- Bitcoin’s price has a history of seeing short-term volatility when Powell speaks – yet not always in a predictable direction. However, investors and analysts generally agree that Bitcoin and crypto markets closely track equities, all of which have been hammered during the Fed’s monetary tightening this year.
- Both the S&P500 and NASDAQ briefly fell by about 1% right as Powell’s speech began, but quickly bounced back afterward.
- Crypto enthusiasts like Galaxy Digital CEO Mike Novogratz and BitMEX co-founder Arthur Hayes have predicted that the Fed will “flinch” before being able to quell rising prices. However, Powell’s words signaled that the Federal Open Markets Committee is ready to face economic pain.
-
“Reducing inflation is likely to require a sustained period of below trend growth,” he stated. “There will very likely be some softening of labor market conditions.”
- The chairman gave no indication of how much FOMC plans to raise its target interest rate heading into its September meeting.
