Today Powell speaks, but bitcoin already knows where it's going
The structural path of bitcoin is bullish, even though the short term may be dressed in red.
Bitcoin (BTC) could move sharply today. It might rise to USD 100,000 if Jerome Powell is more dovish in his stance than expected, or it might fall to USD 90,000 if the tone is tougher than the market wants to hear. But none of that matters too much when looking at the bigger picture. Deep down, bitcoin already knows where it's going.
As happens before every decision of the Federal Reserve (Fed) of the United States, the market enters a phase of pause, expectation, and speculation. Bitcoin has not been the exception. Yesterday, it was trading around 94,000 dollars, with smooth movements as investors awaited the signals that the Fed chair, Jerome Powell, would give today. There is speculation that there will be no rate cut this time, but what could move prices is the tone of the subsequent speech.
Powell, as we know, has a way of influencing the markets beyond what the official statements dictate. A more open language to future interest rate cuts could ignite appetite for assets considered 'risky.' A more rigid message, on the other hand, could cause a pullback in stocks, cryptocurrencies, and other instruments sensitive to liquidity.
But even if bitcoin were to crash today due to Powell's speech—something that cannot be ruled out—the essence of its proposition remains unchanged: bitcoin is a scarce, decentralized store of value, resistant to political manipulation, and increasingly adopted by individuals, businesses, and, paradoxically, governments. The structural path of bitcoin is bullish, even though the short term is dressed in red.
