Jerome Powell's Speech Turns the Overall Cryptocurrency Market Green, BTC Nears $62.2K

Today, August 23, 2024, Federal Reserve Chair Jerome Powell’s speech at Kansas City has turned the overall cryptocurrency market green.

Federal Reserve Chair Jerome Powell's speech at Kansas City on August 23, 2024, regarding interest-rate cuts has had a positive impact on the cryptocurrency market.

Powell's speech at the Kansas City Fed's annual economic symposium signaled a potential shift in the central bank's stance on interest rates. During his speech, Powell stated that "The time has come for policy to adjust," indicating the Fed's interest in cutting rates.

Powell's remarks suggest that an interest rate cut is likely in September, though the timing and pace of the cuts will depend on upcoming data. Currently, the market anticipates a 50 basis points (0.50%) rate cut in September. A smaller cut, such as 25 basis points (0.25%), could trigger a sell-off in the market.

Powell also highlighted the labor market as a greater concern for the economy than inflationary pressures. This signals that inflation is manageable, while the current labor market poses a more significant threat.

Despite the central bank's focus on achieving price stability, Powell stated that the Fed would continue to support a strong labor market.

Commenting on these rate-cut expectations, James Seyffart posted on X (formerly Twitter) that the market has not yet fully priced in a 50bps cut for September.

Following Powell's speech on interest-rate cuts and the labor market, the cryptocurrency market has seen a slight uptick. The overall market is up by 0.61%.

Among the top assets, Bitcoin (BTC) and Ethereum (ETH) have seen a price increase of over 2% and 3%, respectively, in just a few hours. Solana (SOL) and Dogecoin (DOGE) also experienced a price surge of 1.5% and 5%, respectively, during this time.

However, BTC is at a crucial level here, where if it manages to close a daily candle above the $62,200 level, there is a high possibility that BTC could soar to $68,000 and $71,000 levels in the coming days.

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