When The Crypto Bear Or Bull Period Will Start, Analyzing The Facts
26 Agosto 2022 - 11:05PM
NEWSBTC
August 26 is the long-awaited day for a critical shift in the
crypto market price movements. At the end of today, the bears or
the bulls will take over the market, although everyone hopes for a
reversal of the bearish trend. Recall that the last announcement of
inflation data didn’t push the market down. Instead, investors saw
some price rallies. But from this week’s price movement, it’s
evident that the recovery has subsided. Related Reading: Dogecoin
Price Movement Thwarted By Sellers, What’s Next On Chart? But
another movement might take place after the Federal Reserve annual
meeting. The Federal Reserve Annual Meeting Every year, the Federal
Reserve convenes a meeting with many economists. The host of this
meeting is usually Jackson Hole, where the central bank lays down
its annual economic agenda. The data on the US Personal Consumption
Expenditure MoM will be revealed during the meeting today. This
information is another critical inflation data that will disclose
the nature of the crisis. In addition, this data will show whether
people are spending more now or less, indicating a healthy or
unhealthy economy. Apart from announcing the Personal Consumption
Expenditure MoM, the crypto market is also worried about the plan
of the Federal Reserve to curb inflation. Interested investors can
watch Jerome Powel’s speech on the Kansas City Federal YouTube
channel. Why Should Crypto Investors Be Worried? Recall that Neel
Kashkari, the CEO and president of Minneapolis Fed, made some
comments a day back stating his expectation of the Volcker-esque
approach. According to history, Paul Volcker was the Federal
Reserve Chairman in 1927. During raging inflation in the USA,
Volcker created two short but massive recessions to forcefully stop
spending and reduce inflation. By making such suggestions, Kashkari
believes that the Federal Reserve should create recessions to stop
inflation. Being one of the dovish Feds officials, his statements
have worried many people in the crypto sector. This is because
others, such as James Bullard, the President of St. Louis, were
even the ones taking the toughest stance earlier. So, the scale
could be tipped to either side in today’s meeting. If the current
Federal Reserve chair Jerome Powell now agrees with others, the
crypto market will turn more bearish. But if he decides to resolve
inflation peacefully, the crypto market will move bullishly.
Related Reading: Bitcoin Approaching $22K, Market Gets New Reason
to Celebrate? From the above expectations, it is evident that the
Federal Reserve has the power to create a recession. Therefore, the
outcome of the meeting is now dependent on how Jerome Powell will
decide to tackle the inflation, dovish or hawkish. Featured image
from Pexels, charts from TradingView.com
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