While uncertainty still continues in the market following the declines in Bitcoin and altcoins, a new analysis has revealed that Bitcoin and Ethereum may experience a correction this week.
According to new analysis by Singapore-based cryptocurrency trading firm QCP Capital, BTC and ETH may experience corrections following Fed Chair Jerome Powell's statements this week.
Highlighting growing concerns that the U.S. job market may not be as strong as expected, QCP Capital said Jerome Powell is expected to address these concerns at his upcoming Jackson Hole meeting.
QCP analysts said the Fed is delaying rate cuts due to a stronger-than-expected labor market and a strong economy, and that a definitive decision on rate cuts is unlikely before the September FOMC meeting.
QCP lastly said that Powell’s comments could reverse the recent stock market rally, push BTC and ETH below support levels, and corrections could occur.
Despite all the uncertainty in the market, the Fed is still expected to cut interest rates in September, QCP added.
“….
A particularly lenient Powell could reverse the 2-week stock rally and push Bitcoin (BTC) and Ethereum (ETH) below their support levels.
“Regardless of the revision, the Fed appears ready to cut in September. The market is currently pricing in 3.7 cuts in 2024 and 4.5 in 2025.”
*This is not investment advice.