Bitcoin Hovers Around $28,500 as Market Anticipates Key Federal Reserve Address
Summary:
Bitcoin's value remains steady at around $28,500 as the market awaits a key address by Jerome Powell, Federal Reserve Chairman, on U.S. economic policy. His comments could influence Bitcoin's price trajectory amidst the backdrop of soaring U.S. ten-year bond yields. While the probability of maintaining status quo in interest rates is high, economist Mohamed El-Erian argues against another hike, suggesting benefits for risk assets like crypto. Meanwhile, Bitcoin traders persist in monitoring liquidity movements as resistance and support levels remain unchanged.
Bitcoin continues to hover around the $28,500 mark as Wall Street commenced trading on October 19, anticipating a significant address on U.S economic strategy. All eyes are on Jerome Powell, Federal Reserve Chairman, whose statements on the shifting macroeconomic landscape could potentially influence the Bitcoin price trajectory. He's slated to speak at the Economic Club of New York at noon, eastern time, on Thursday, amidst the swelling U.S ten-year bond yields, which are at a peak since 2007.
The looming reminder of the 2008 Global Finance Crisis has market watchers keen to dissect Powell's language, whether it inclines towards reassurance or caution. With bond yields rising, asset management expert Lawrence “Larry” Lepard posits that Powell might make a move that catalyzes an upswing in the U.S Bond market.
Recent economic indicators reveal persistent inflation, and a prolonged phase of high-interest rates was envisioned by the Federal Reserve. However, according to CME Group’s FedWatch Tool, the market's probability of the status quo being maintained in interest rates is 88% for the upcoming meeting of the Federal Open Market Committee scheduled for Nov. 1, while a mere 11% chance for a further hike.
Economist Mohamed El-Erian, during his appearance on CNBC’s “Squawk Box” segment, argued against another hike in rates, suggesting it profits risk assets like crypto. Bitcoin traders remain watchful of the liquidity fluctuations, contributing to reduced volatility.
In conjunction with Binance futures, data from Material Indicators maintains the steady dynamic in Bitcoin trading, with significant resistance and support levels persevering. Noteworthy targets of $28,000 and $29,000 were flagged by Crypto Tony, an observer of crypto trends.
While potential risk is at the core of every investment and trading decision, the prevailing market dynamics indicate a positive outlook for Bitcoin, backed by robust buyer support. It's advised that readers undertake their own research before making any investment decisions and consult a trusted financial advisor when necessary.
Published At
10/19/2023 2:50:14 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.