Experts expect Jerome Powell’s post-FOMC speech to address rising inflation and crypto market volatility. Here’s why it matters.
The speech delivered by Jerome Powell signifies the conclusion of the FOMC meeting.
Powell will present the monetary policy report and address the Fed’s economic decision during the meeting, which is currently in progress.
The crypto market’s current state is not very promising, and the interest rate decision could make or destroy it.
Therefore, what can attendees anticipate from the conference? We should engage in a conversation.
Cryptocurrency Market Experienced Significant Decline Before Jerome Powell Speech, Which Is Scheduled To Occur Today
The Federal Reserve Chair, Jerome Powell, will commence his speech or press conference at 2:30 p.m.
Eastern Time today, Wednesday, June 18. The meeting is an after-event of the ongoing FOMC meeting in Washington, D.C.
Notably, the Federal Reserve is anticipated to maintain the interest rate at 4.25%-4.50%, which may result in some volatility in the cryptocurrency market.
Macroeconomic events, such as Fed meetings and interest rate decisions, significantly affect the financial market.
Additionally, there is a high likelihood that the outcome will be contrary to investors’ expectations, which could result in selling pressure in the market.
Even more significantly, investor sentiments were affected by the Israel-Iran conflict.
Bitcoin’s price has plummeted to $105k, and most digital assets have experienced a similar decline.
The total market capitalization has decreased by 1.23% to $3.29T. Nevertheless, the Federal Reserve’s decision could result in additional disasters.
What Can We Anticipate From Jerome Powell Speech Delivered Today?
Despite the pressure exerted by Donald Trump, the FOMC meeting is expected to conclude with unchanged interest rates.
The Fed’s “wait and see” approach, a robust labor market, and a minor inflation hike to 2.4% in May from 2.3% in April suggest a 99% chance that they will maintain the Fed rate cuts this month.
Nevertheless, a few crypto analysts, such as Ash, think the current Israel-Iran conflict will increase inflation as the energy price increases.
Subsequently, Jerome Powell would address this matter during the conference.
Additionally, he predicted that Bitcoin’s price recovery would be a V-shape if Powell expressed a dovish stance.
Nevertheless, the crypto market and others would experience a further decline if Powell discussed the possibility of increasing inflation.
Michaël, an additional analyst, asserts that the FOMC meeting frequently establishes the bottom for Bitcoin the day prior.
Additionally, he advised investors to view this brief decline as a purchasing opportunity, particularly in light of the imminent substantial increase in M2 supply.
The Bitcoin price is highly volatile and has been unable to break out of the $110,000 critical resistance.
If it regains $108k, the Jerome Powell speech could propel it toward $112k or plummet toward $100k.
