Crypto markets are currently at Jerome Powell’s mercy, as his upcoming decisions could significantly impact the industry. Wall Street is rife with speculation, particularly concerning a potential revision of U.S. payroll growth, which might see a downward adjustment of 600,000 jobs.
This revision could reveal that the U.S. job market is not as robust as previously believed, a possibility that has the markets on edge. According to QCP Capital, such a revision would be a substantial revelation, raising questions about whether the Federal Reserve has accurately assessed the economic landscape. The Fed has maintained higher interest rates, citing a strong economy and a thriving job market. However, revising the job numbers downward could prompt a significant shift in the Fed’s approach.
All eyes are now on Powell, who is expected to address these concerns at the upcoming Jackson Hole symposium. However, market watchers are still waiting for definitive answers, as the next Federal Reserve meeting is still a month away. Given the uncertainty of the job numbers, Powell might choose to remain cautious.
The potential downward revision, combined with Powell’s dovish tone, could disrupt the current two-week equity rally and push Bitcoin (BTC) and Ethereum (ETH) below their crucial support levels. Even without the revision, the market anticipates rate cuts in September, with expectations of 3.7 cuts in 2024 and 4.5 in 2025. How these developments will impact the crypto market remains uncertain, making Powell’s next move crucial.
Bitcoin price forecasts remain uncertain
Bitcoin price predictions have become increasingly varied, reflecting the market’s current uncertainty. A short while ago, BTC/USD was approaching $70,000, spreading widespread optimism. However, those highs now seem distant, with Bitcoin trading in a descending channel without a clear direction.
Institutional investors are not as active as they used to be, and miners are still recovering from the April block subsidy halving. This event significantly impacted their operations, further contributing to the market’s volatility.
Despite the challenges, CryptoCon analysts remain optimistic about Bitcoin’s long-term prospects. He is mainly focused on 2025, predicting that BTC could reach around $200,000 by then. However, CryptoCon is not rushing to sell, believing higher prices are still on the horizon. He bases his forecast on the “November 28th Cycles Theory,” which suggests that significant BTC price movements tend to occur within three weeks on either side of November 28th every four years.
CryptoCon is confident that 2025 will be a pivotal year for Bitcoin, marking the next long-term peak. His optimism contrasts with the market’s current uncertainty, but his theory offers hope for investors looking for long-term gains.
The market anticipates the September Fed meeting
As the September Federal Reserve meeting approaches, the crypto market remains on edge. The anticipation of potential rate cuts and the possibility of a significant downward revision in job numbers have created a tense atmosphere. Jerome Powell’s remarks at Jackson Hole will be closely scrutinized, though the market does not expect definitive answers yet.
The outcome of these developments could have a profound impact on the crypto market, with Bitcoin and Ethereum’s support levels hanging in the balance. Investors and traders alike are bracing for what could be a pivotal moment for the industry, making Jerome Powell’s next move one of the most anticipated events in the financial world.