What In Fed Chair Jerome Powell Speech Could Spur Bitcoin Price Rally?

Crypto Market News: The financial markets have largely digested the market wide expectation that the US Federal Reserve would announce a no interest rate hike decision from the ongoing Federal Open Market Committee (FOMC) meeting. Adding to the existing hopes of rate hike pause in the last one week, the US consumer price index (CPI) data showed that inflation rate cooled down in May 2023. This goes well with the US Fed’s monetary tightening policy, which targets bringing down the inflation rate to 2%. Meanwhile, the top cryptocurrencies are showing little to no change compared to 24 hours ago, in what could be due to anticipation of the Fed decision.

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Yet, market participants could likely look closely for hints on what lies ahead, as against the current interest rate hike decision, assuming there will be a Fed pause. Encouraging statements in Jerome Powell speech could lay a foundational rally for weeks ahead, as fears of global market concerns still remain. Powell speech will begin at 2.30 pm eastern standard time.

Deutsche Bank Predicts Big Reaction From Powell press conference

While the CME FedWatch Tool shows a 97.7% probability of a Fed pause, it is the forecast about conditions in the upcoming FOMC meetings that could have a big impact following the announcement, Deutsche Bank said. Although the bank did not specify Bitcoin price or crypto markets particularly, previous FOMC meetings showed an immediate ripple effect from financial markets to the crypto market. The bank noted,

“Market pricing is currently pointing towards just one more rate hike in July, so any indication there’ll be more (or less) than that could lead to a big reaction.”

The S&P 500 Index is having a largely sideways movement on Wednesday, which is also reflecting on Bitcoin price.

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