Bitcoin gains strength ahead of crucial economic policy speech
Bitcoin (BTC) maintained its pressure above $28,500 as investors eagerly awaited a key speech on United States economic policy. BTC price action showed signs of strength ahead of Jerome Powell's commentary, who is the chair of the Federal Reserve. Powell's speech, scheduled for 12 pm Eastern Time on Thursday, comes at a time when the US bond yields are at their highest level since 2007, raising concerns among market participants.
Fed's language is the key focus
The market is closely watching Powell's speech to decipher whether his language will be dovish or hawkish in light of the current macroeconomic scenario. With the memories of the 2008 Global Financial Crisis still fresh, many are curious to see if Powell will address the ongoing bond rout. Lawrence "Larry" Lepard, an asset management guru, emphasized the importance of the Fed's intervention to halt the bond rout.
Interest rates may remain unchanged
Despite expectations of high interest rates due to persistent inflation, the latest data from CME Group's FedWatch Tool suggests that market odds of rates remaining unchanged at the next Federal Open Market Committee (FOMC) meeting are at 88%. This indicates a mere 11% chance of a rate hike. Economist Mohamed El-Erian also emphasized that rates should not rise again, which would benefit risk assets, including cryptocurrencies.
Bitcoin traders closely monitor liquidity
Bitcoin's price movements remained relatively stable, with reduced volatility and liquidity walls providing support and resistance levels. Traders are keeping a close eye on significant lines in the sand, such as $28,000 and $29,000, to assess Bitcoin's future trajectory. Key trendlines are indicating a bullish outlook for Bitcoin, with strong buyer support.
This article does not contain investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.
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