After falling below the $21,000 level in the past few days, Bitcoin price is hovering in the same range. The price of the top cryptocurrency in the market is almost 10% lower than last week, and the presence of fear in the market is quite evident, and we will probably see more price fluctuations with the Jackson Hole Symposium that will be held this week.
As some people predict new bottoms and further declines, and others warn of difficult months ahead, buyers should expect a lot in a short period of time. and consider the long term.
The Federal Reserve’s annual Jackson Hole meeting takes place this week, while September is an important month for inflation and related price drivers.
These conditions may mean price volatility across risk assets in September and before. After going through last week’s difficult conditions, anxious investors will no doubt not welcome these conditions.
All attention is focused on the Jackson Hole conference
The US Federal Reserve could once again activate large price stimulus for risky assets. Officials of the Federal Reserve, who published the minutes of the FOMC meeting last week, will meet on August 25-27 (3-5 September) along with famous names in the world’s banking arena, at the annual Jackson Hole conference. . This year’s meeting will be held at a very important and sensitive time for the American market.
The latest US inflation data is from several weeks ago, but Jerome Powell is still talking about how the Fed will react, as well as the Fed’s stance on future economic policy.
In this way, the fluctuation of prices will probably increase before and during this conference. This makes traders pay special attention to the Jackson Hole conference.
Kevin Cummins (Kevin Cummins), America’s chief economist in the field of Western markets has said:
Officials are focused on getting this conference right because they did so badly last year with their short-term strategies and have realized that what they need to do now is to implement tighter policy to reduce inflation.
Thus, it should be seen whether the market is in favor Increase 0.75% interest rate will go ahead in September or will be pulled towards a 0.50% increase.
Bank of America said regarding the Jackson Hole conference that the bank is looking for a 0.50% interest rate hike in September and November and a 0.25% hike in December.
An increase in interest rates creates obstacles for risky assets. In this way, a challenge is placed in the path of Bitcoin to reduce and end its connection and correlation with other assets such as the American stock market.