In his speech at Jackson Hole, Jerome Powell pointed out the risks of the labor market and suggested that the Federal Reserve might be forced to cut rates in September. He noted that employment growth has stalled, with payrolls well below expectations, raising doubts about job stability.
The comments changed the market perception, and the Fed chairman admitted that the downside risks to growth now outweigh inflationary risks. He also acknowledged that tariffs might not increase inflation as much as previously anticipated, which weakens the restrictive stance.
The price of Bitcoin responded immediately, surpassing $116,000, as investors priced in a more flexible monetary policy, especially after the mention of the September rate cut. Historically, moderate changes at Jackson Hole have been followed by strong rebounds in cryptocurrencies. The current cycle seems to follow the same pattern.
Bitcoin has reaffirmed its strength by maintaining key support and reacting strongly to Powell's statements. Historical data indicates that there has been a consistent rebound following the Jackson Hole event, and this is likely to repeat. The consolidation above $112,000 contributes to the technical strength, reinforcing investor confidence in new gains. Therefore, the price prediction for Bitcoin remains strongly tilted towards further upside as macroeconomic and chart factors align.
