As per recent reports, Bitcoin and Ethereum had reinitiated with not much progress, with the continuous suppression of worldwide crypto industry volatility for the week and will continue to, due to the much-expected Jackson Whole Symposium.
A day later, the top-most crypto-assets as per industrial capitalization were trading at $19,989, with their value shifting between $21,600 and $21,300 since the beginning of the week. At the same time, regardless of its weak attempts to touch the $1,700 line again in the week, ETH dropped by 4.50% overnight and traded at the $1,474 level with other altcoins like XRP, Cardano, SHIB, DOGE, and DOT showing highly fragile volatility.
Meanwhile, although the earlier interest rate hikes seemed to reach a low-price range, inflation was still above 8.5% i.e., quite more than the Fed’s 2% goal, making some traders believe that the Fed can move ahead with extensive tightening. Nonetheless, for some, the Fed must be compelled for some time to revoke its aggressive anti-inflation policy.
“Investors appear to believe that inflation will soon come down. The difference in yields between standard U.S. Treasuries and Treasury Inflation-Protected Securities suggests that investors now see inflation below 3% going forward,” said Erik Norland, Executive Director, CME Group. As per the statement given by Norland, the previous month’s favorable employment report and the resultant downfall in the energy rates could compel the Fed in taking a step back, letting the funds and the crypto industry to recover.
Although, as per Phil Streible, chief market strategist of Blue Line Futures, traders should prepare for any sort of consequences in reference to Powell’s statement. “If Powell emphasizes the combatting of inflation, you know it’s gonna be extra hawkish; the Fed tool is already pricing in about a 60% chance of the 75bprate hike at the September 21 meeting,” he told Kitco News recently. Regardless, keeping the initial symptoms of a recession in mind, if Powell moves slightly dovish “just in his tone,” it can begin risking digital assets.
Aurora has worked with a leading crypto news site as a Journalist. Aurora is working as Senior Journalist with Coinfea. She loves to travel in her free time.