Crypto Market Dips into Fear as Bitcoin (BTC) Hits Another Low: What’s Next?
Crypto Daily - Positive sentiment that had been riding high as recently as last week has become fear as the Bitcoin price has fallen $11,500 in less than a week. A rebound has taken place on Wednesday morning, but will it be resilient, or will Bitcoin come crashing down out of its bull flag?
Market sinks into fear
Source: Alternative.me
The market officially became fearful on Wednesday as the Fear and Greed Index crashed from a reading of 56 to 44 in only 24 hours. It must also be remembered that the Index was sailing high in the bright green at a reading of 73 just less than a week ago.
Powell’s Jackson Hole speech will be key
The same nervousness pervades in traditional markets as investors await Fed Chairman Powell’s speech at the Jackson Hole Summit on Friday. Powell has used this forum previously to ready the market for rate cuts, although with his ongoing spat with President Trump, things have become more complicated.
A very bad data release on unemployment figures, plus extreme downward revisions of previous jobs reports may force Powell’s hand in favour of at least a 25 basis points cut in September.
That said, the recent Producer Price Index (PPI) report came in hot, with much higher prices than were forecast, causing the Fedwatch CME rate cut expectation to fall to 85%, down from almost 100%.
With all of this uncertainty persisting into the end of the week, Bitcoin might have a difficult time rallying strongly. However, if Powell does hint at a cut in September and possibly a further softening of interest rate policy into the end of the year, this could be enough to spark the next big surge for the king of the cryptocurrencies.$BTC