Jerome Powell's speech marks the end of the FOMC meeting. Powell will address the Fed's economic decisions and discuss the monetary policy report today, as the meeting is ongoing. The interest rate decision could make or break the cryptocurrency market, and its current situation is not very promising. So what can we expect from the conference? Let's discuss.
The cryptocurrency market collapsed ahead of Jerome Powell's speech today.
The speech or press conference of Fed Chair Jerome Powell will begin at 2:30 PM Eastern Time today, Wednesday, June 18. The meeting is the event taking place after the ongoing FOMC meeting in Washington, DC. Notably, the Fed is expected to keep interest rates unchanged at 4.25%-4.50%, causing a slight disruption in the cryptocurrency market.
Macroeconomic events such as the Fed meeting and interest rate decisions have a significant impact on financial markets. And since there is a high likelihood that the results will contradict investors' predictions, selling pressure is building in the market. More importantly, the Israel-Iran conflict has affected investor sentiment.
The total market capitalization has decreased by 1.23% to $3.29 trillion, with the price of Bitcoin dropping to $105,000 and most digital assets experiencing similar declines. However, further collapses may form depending on the Fed's decision.
What can we expect from Jerome Powell's speech today?
The FOMC meeting is likely to conclude with unchanged interest rates despite pressure from Donald Trump. Inflation rose slightly to 2.4% in May from 2.3% in April, a strong labor market, and the Fed's "wait and see" approach suggest a 99% chance they will keep the Fed's interest rates unchanged this month.
However, some cryptocurrency analysts like Ash believe that the ongoing conflict between Israel and Iran will lead to rising inflation, as oil prices have surged. Therefore, Jerome Powell will address this issue at the conference.
Furthermore, he predicts that the price of Bitcoin will recover in a V-shape if Powell shows a dovish stance. However, if Powell talks about rising inflation, the cryptocurrency market will collapse further, along with other markets.
Another analyst, Michaël, added that the FOMC meeting often provides a bottom for Bitcoin the day before. He also urged investors to view this temporary decline as a buying opportunity, especially as M2 supply is about to increase significantly.
Currently, the price of Bitcoin is very volatile and unable to break through the key resistance level of $110,000. Jerome Powell's speech could push the price up to $112,000 if it recovers to $108,000 or drop to $100,000.