Bitcoin, which rose above $66,000 last week, started the new week with a decline and fell to $64,000 levels.
As BTC and cryptocurrencies continue to fall, investors are focusing on two major macroeconomic events this week: Fed Chair Jerome Powell’s speech at the National Association for Business Economics later today at 8:55 p.m. and the U.S. nonfarm payrolls data set for Friday.
At this point, experts expect Powell to speak about the US economic outlook and the Fed's monetary policy. Experts stated that the possibility of another major interest rate cut by the Fed in November is expected to become clear after Powell's speech and the release of new employment data.
Powell's Speech Could Affect Bitcoin!
Speaking to The Block, Rachael Lucas, a crypto analyst at BTC Markets, noted that Bitcoin is overbought on the daily chart, triggering focus on the upcoming US employment data.
Lucas noted that Powell's comments on inflation and interest rates could significantly affect market sentiment, saying:
“Powell’s comments, particularly on inflation and interest rates, often move markets and crypto is no exception.
Any hawkish tone could further fuel risk aversion, contributing to today's declines.
But if Powell strikes a moderate tone and employment data comes in stronger than expected, it could benefit riskier assets like Bitcoin and Ethereum.”
Powell's Speech Won't Move the Market!
However, SOFA's Augustine Fan said it was unlikely Powell would make any market-moving announcements today.
“Investors probably expect him to say the same things as he did at the last FOMC, especially since the recent inflation data has been moving in his favor since the last mild Q&A session.”
Fan also added that the cryptocurrency market is likely to remain in an uptrend in the near term.
*This is not investment advice.
