Crypto Market Regains Ground Ahead of Key US Jackson Hole Meeting
The crypto market on Tuesday saw cautious optimism ahead of an annual key meeting of global central bankers known as the Jackson Hole Symposium, with prices of both bitcoin (BTC) and ethereum (ETH) climbing higher for the past 24 hours.
The Jackson Hole Symposium is scheduled to begin in Wyoming in the US this Thursday, with US Federal Reserve (Fed) chairman Jerome Powell expected to hold a closely watched speech about the economic outlook on Friday.
It is presumed that Powell will use his speech to further guide expectations on the Fed’s interest rate policy, with some predicting that Powell will once again take a more hawkish stance on monetary policy.
Among those who have warned about a hawkish Powell is David Duong, head of institutional research at Coinbase, who wrote in a recent market commentary that the Fed chair is likely to signal a need for continued interest rate hikes in the US.
“Jerome Powell will more likely try to take a more measured approach in Wyoming and emphasize that the tightening cycle isn’t over yet,” Duong said, noting that the minutes from the last Fed meeting may have been interpreted as more dovish than the Fed had intended.
Duong added that bitcoin, as a result, could struggle in the short term, with the current technical analysis picture adding increased bearishness for the largest crypto.
"BTC will likely retest support at [USD] 20,830 and [USD] 19,230 over the coming few weeks," Duong wrote, while noting that Powell's comments at the Jackson Hole symposium will be “closely watched” by traders.
A similar sentiment was also shared by analysts at the Singapore-based crypto trading firm QCP Capital, who said in a recent market update that “Fed officials have been actively pushing back on the dovish
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