Bitcoin Price and Ethereum Prediction: What Powell's Speech Could Mean For Crypto Prices?
Bitcoin is on a continuous fall, trading at about $22,886 early Tuesday morning. On the other side, Ethereum has recently been able to maintain stability at the $1,600 mark. Market players are concerned following Friday's surprisingly positive job data. While investors await the Fed chairman's address later today.
Bitcoin was on an upward trend in the first week of February, reaching a new high of more than $24,000. The token, however, was unable to hold the $24,000 level, and the price dropped below the $23,000 mark. Market experts believe that February will be less successful than January.
Market experts have warned that the current trend in crypto and stocks may reverse this month due to the uncertainty around the possible impact of upcoming macroeconomic data from the United States on market sentiment. However, the reason for the negative trend could be attributed to the Federal Reserve's recent interest rate rises.
The US markets were relatively quiet after last weekend, with interest rates remaining unchanged and inflation data continuing to be weak. The next couple of times the Federal Reserve raises interest rates will depend on how the economy evolves over the coming period. People are expecting a decline in economic conditions, which may prompt policy easing. The dollar and US Treasury yields have enjoyed a period of appreciation, but that is now likely to change. This is undermining the effectiveness of the Fed's hikes around the short end of the curve as it tries to maintain a low level of inflation in its system.
His appearance at the Economic Club of Washington on Tuesday, 7th February was a highlight for the week. In case the Fed fails to push back meaningfully against the market reaction, this could imply
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