BTC Price Gains Strength Ahead of Powell’s Key Speech
Bitcoin (BTC) maintained its position around $28,500 as it awaited a crucial speech by Jerome Powell, the Chair of the Federal Reserve. The speech was expected to shed light on the economic policy of the United States.
Powell’s “Very Dovish” Outlook
Jerome Powell was scheduled to address the Economic Club of New York at 12 pm Eastern Time, and the financial markets were closely watching his words. Powell faced a challenging macroeconomic landscape, with U.S. ten-year bond yields reaching their highest levels since 2007.
The focal point of discussion was the tone of Powell’s language—whether it would be dovish or hawkish—considering the memories of the 2008 Global Financial Crisis that loomed large in the minds of market participants.
Lawrence Lepard, an asset management expert, expressed his perspective on the matter, stating, “Prediction: Powell is on the verge of saying or doing something which is very dovish which will cause a massive rally in the US Bond market.”
Changing Interest Rate Expectations
Previously, the Federal Reserve had been considering an extended period of high interest rates, given various data indicating persistent inflation. However, the latest data from CME Group’s FedWatch Tool suggested that market odds of rates staying at current levels during the next Federal Open Market Committee (FOMC) meeting on November 1 were at 88%, with only an 11% chance of a further rate hike.
Economist Mohamed El-Erian, speaking on CNBC’s “Squawk Box,” voiced the opinion that rates should not increase. This perspective would be more favorable for risk assets, including cryptocurrencies. He stated, “The message to give right now is the Fed is done, we are done.”
BTC Price Stays Stable Amid Liquidity
Bitcoin’s price movements remained relatively stable, with volatility reduced as it navigated through areas of liquidity. The Binance order book depicted significant support and resistance levels that had not changed significantly despite earlier volatility.
Traders were keeping an eye on crossing more substantial support and resistance levels, with $28,000 and $29,000 identified as key targets. The presence of these key trendlines provided a bullish outlook for Bitcoin’s future, with sustained buyer support.
Please note that this article does not constitute investment advice or recommendations. Every investment and trading decision carries inherent risks, and readers should conduct their research before making any financial decisions.