MARKET – rev, Pediafx
August 28, 2023
Pediafx – The crypto market has shown varied movements in the past 24 hours following the Jackson Hole Symposium attended by the Chairman of the United States Federal Reserve (The Fed), Jerome Powell.
According to CoinMarketCap on Monday (28/8/2023) at 07:59 AM Western Indonesia Time (WIB), the crypto market has experienced mixed performance. Bitcoin saw a slight increase of 0.11% to reach US$26,021.04, but it still recorded a weekly decline of 0.44%.
Read: How Will Cryptocurrencies Fare Amidst the Fed’s Tightening Policy?
Ethereum appreciated by 0.22% in the past 24 hours, but it has experienced a 1.84% decline over the past seven days.
XRP weakened by 0.68% on a daily basis and suffered a significant drop of 3.36% over the past week.
On the other hand, Solana strengthened by 1.13% in the past 24 hours, although it remains in negative territory with a weekly decline of 4.82%.
The CoinDesk Market Index (CMI), which measures the performance of the weighted market capitalization of digital assets, saw a slight increase of 0.09% to reach 1,111.03. Open interest also appreciated by 2.56% to reach $22.50 billion.
Last week, the annual Jackson Hole Symposium organized by the Federal Reserve Bank of Kansas City took place. It is a high-level meeting attended by central bank governors and economists, including representatives from the United States Federal Reserve (The Fed).
The potential for tighter monetary policy by The Fed was explicitly stated in the speech by Jerome Powell, the Chairman of The Fed, during the Jackson Hole Symposium on Friday (25/8/2023).
Powell stated that The Fed is “ready” to raise interest rates further if “necessary.” This statement refers to the central bank’s readiness to continue tight policy measures to control inflation and achieve the 2% target.
“The Fed’s task is to lower inflation to the target rate of 2%, and we will do it. We have tightened policy significantly over the past year. While inflation has come down from its peak—a development that is encouraging—inflation remains too high,” said Powell.
However, Powell also reiterated the central bank’s commitment to continuing tight policy measures while maintaining a cautious approach, whether tightening is necessary or whether interest rates should be maintained.
According to Coindesk.com, the market is currently awaiting catalysts that could boost cryptocurrency prices, such as the potential approval of a bitcoin spot ETF.
Sacha Ghebali, the director of strategy at digital asset data provider The Tie, stated that the high optimism surrounding recent applications, including those from BlackRock, may be an “overreaction.”
“There is a possibility that BTC and the broader crypto market have just entered a consolidation phase and could potentially resume their upward trend in the near future,” said Rachel Lin, CEO of decentralized derivatives exchange SynFutures.
She believes that BTC is currently in the range of $25,000 as the lower limit and $31,000 as the upper limit.
“A sustained breakthrough on either side of this range could determine the direction of the market for the coming months,” added Lin.
