Meeting of the heads of central banks inspired optimism in cryptomarket


On Tuesday, the cryptocurrency market was cautiously optimistic ahead of the annual meeting of the world’s central banks, known as the Jackson Hole Symposium.

The symposium is scheduled to begin in Wyoming this Thursday, where U.S. Federal Reserve Chairman Jerome Powell will deliver a speech on the economic outlook and interest rate policy.

David Duong, head of institutional research at Coinbase, expects that Powell is likely to take a more balanced position and emphasize that the tightening cycle is not over yet.

The expert believes that in the short term, bitcoin may face difficulties, since the current picture of technical analysis indicates an increase in bearish sentiment.

In the next few weeks, BTC is likely to retest support at $20,830 and $19,230,— Duong wrote.

Other market participants, such as Mott Capital Management founder Michael Kramer, on the contrary, believes that Powell will signal a rate hike, albeit at a slower pace.

He added that Powell "needs to make it clear that there will be no rate cuts in the future until it becomes clear that inflation is on a downward trajectory."

Meanwhile, the US stock market has started to feel capital inflows again after many investors left at the beginning of the summer, the Wall Street Journal reports.

The report cites data from the financial research company Refinitiv Lipper, which states that over the past two weeks, investors have invested $11.7 billion in mutual and exchange-traded funds (ETFs). Corporate earnings also turned out to be higher than expected, and inflation in the US fell from its highs, which potentially reduces the risk of aggressive rate hikes.

Given the correlation of the crypto market with the stock market, a recovery trend is also expected in the digital asset market.

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