Jerome Powell Speech: What to Expect as the Crypto Market Plummets Today?

The Jerome Powell speech marks the end of the FOMC meeting. Powell will address the Fed’s economic decision and discuss the monetary policy report today, as the meeting is underway. The decision on the interest rate could make or break the crypto market, and its current state is not very promising. So what’s to expect from the conference? Let’s discuss.

Crypto Market Crashes Ahead of Jerome Powell Speech Today

The Fed Chair Jerome Powell speech or press conference will begin at 2:30 p.m. ET today, Wednesday, June 18. The meeting is an after-event of the ongoing FOMC meeting in Washington, D.C. Notably, the Fed is expected to keep the interest rate unchanged at 4.25%-4.50%, causing a little turmoil in the crypto market.

Macroeconomic events like Fed meetings and decisions on interest rates have a serious impact on the financial market. And as there’s a high probability that the result would be opposite of investors’ anticipation, a selling pressure in building the market. More importantly, the Israel-Iran conflict influenced investor sentiments.

The total market cap has declined 1.23% to $3.29T, Bitcoin price has crashed to $105k, and the same decline is true for most digital assets. However, further crashes could form depending on the Fed’s decision.

What to Expect From the Jerome Powell Speech Today?

The FOMC meeting would likely end with unchanged interest rates despite Donald Trump’s pressure. The minor inflation hike to 2.4% in May from 2.3% in April, strong labor market, and the Fed’s “wait and see” approach hint at 99% chances of them holding the Fed rate cuts this month

However, a few crypto analysts like Ash believe that the ongoing Israel-Iran conflict would cause a rise in inflation, as the oil prices have escalated. As a result, Jerome Powell would address this in the conference.

Moreover, he anticipated that Bitcoin’s V-shape price recovery would happen if Powell sounded dovish. However, if Powell talks about increasing inflation, the crypto market would crash further, along with others.

Another analyst, Michaël,  adds that the FOMC meeting often provides the bottom for Bitcoin the day before. He further asked investors to consider this momentary dip acts as a buying opportunity, especially as M2 supply is about to go up substantially.

At present, the Bitcoin price is highly volatile and has failed to break out from the $110k key resistance. The Jerome Powell speech could push it toward $112k, if it reclaimed $108k, or crash toward $100k.