The Impact of Jerome Powell's Speech on the Currency Market
The speech of the Federal Reserve Chair often affects financial markets, including stocks and cryptocurrencies, through several points:
1. Monetary Policy Hints
If Powell hints at raising interest rates or tightening liquidity, traditional markets and cryptocurrencies often drop.
If he indicates stability or a reduction in interest rates, there may be a rise or rebound in the market.
2. Assessment of the American Economy
His comments on inflation, economic growth, and the labor market can move investors, especially in high-risk assets like Bitcoin and Ethereum.
3. Market Confidence:
Any harsh signals or sudden shocks may lead to a collective sell-off in cryptocurrencies.
Positive signals boost buying and quick rebounds after any drop.
The speech will be held today, Tuesday, at 12:35 PM Eastern Time, 6:35 PM Saudi Time.
