Bitcoin down, ether up as traders await Fed Chairman Powell’s keynote speech in Jackson Hole
Cryptocurrencies traded mixed on Thursday afternoon as speculators await Federal Reserve Chairman Jerome Powell’s Friday appearance at the Jackson Hole Economic Policy Symposium for clues on how the central bank will control inflationary pressures. at the risk of tipping the US economy into recession.
Bitcoin (BTC-USD) slipped 0.7% at $21.52,000 around 3:00 PM ET, while Ethereum (ETH-USD) rose 1.9% at $1.70,000. Overall, the global crypto market capitalization is up slightly by 0.2% to $1.04T, according to data from CoinMarketCap.
With all eyes on the Fed heading into Jackson Hole, cryptos have been acting less volatile over the past week. Bitcoin (BTC-USD), for example, has remained in a relatively narrow range of $20.9K to $21.7K, and remains down close 70% since peaking in November 2021. Apparently, the digital token is around 54% below its fair value based on its price-to-network ratio, indicating that now is a good time to be long, said Andrew Feazelle , another SA contributor.
Meanwhile, the stock market, which has a close relationship with bitcoin (BTC-USD), has perked up with the Dow Jones (DJI) +0.3%S&P 500 (SP500) +0.7% and Nasdaq (COMP.IND) +0.9%. The rally comes as Treasuries catch a bid on the curve. The 10-year bond yield (US10Y) fell 8 basis points to 3.03% and the two-year bond yield (US2Y) fell 1 bp to 3.37%.
“The Jackson Hole symposium could be a bullish catalyst for markets,” said GlobalBlock analyst Marcus Sotiriou, noting that “the selling pressure that occurred prior to the event may mean the market has already taken into account” in the hope that Fed policymakers will be more aggressive in tackling inflation.
Crypto-related stocks also traded mixed, with Marathon Digital (MARA) -8.2%BIT Mining (BTCM) +8.4%Blockchain HIVE (HIVE) -3.4%Binary Digital (BTBT) +1.3%Basic Scientist (CORZ) -ten%Galaxy Digital (OTCPK: BRPHF) +4.9% and Coinbase Global (COIN) -2.3%.
Earlier, expect Jerome Powell to push back on rate hike pause expectations in Jackson Hole.