Today, the Fed President Jerome Powell will speak and all eyes will be with him. Powell’s speech in terms of messages on Fed’s monetary policy is very important for the crypto market, especially gold and Bitcoin. After last week’s interest rate hike, the FED President will make a speech at the Annual Economic Policy Conference organized by the National Business Economics Association at 19.00 today.
“The price of gold is therefore traded over $ 1,900”
Gold prices rose on Monday to compensate for a portion of the losses suffered last week, with investors’ development of Russia-Ukraine war and the federal reserve weighing their subsequent moves to help prevent inflation. Insignia Consultants Research Director Chintan Karnani made the following assessment:
Traders are trying to evaluate the economic impact of Ukraine in the second quarter and in the following quarters. The probability of hypenflation and stagflation is the reason why gold prices are traded above $ 1,900.
“We should expect more tolerance to higher inflation from central banks”
Kriptokoin.comAs we have included in the news, the FED last week, a large -scale -expected quarter -point increase, and until the end of 2023, such a total of 10 to 11 signal gave. Some Fed officials argued that Powell, an option that Powell does not ignore, to increase interest rates half -point in the future. FXPRO Senior Market Analyst Alex Kugünikevich interprets its impact on the markets as follows:
For short -term traders, the Gold remained in the background while trying to evaluate the impact of deteriorated supply chains and the amount of supply deficit in the raw materials and food. At the same time, medium -term traders should not overlook the fact that the current situation will not allow central banks to move adequately. As a result, nominal money supply will increase faster than the commodity supply. In other words, we should expect more tolerance to higher inflation from central banks.
Alex Kugüncikevich says that governments should be expected to provide financial support to the economy, which means increasing the supply of money and the higher the ratio of public debt to gross domestic product.
Naeem Aslam: Gold will continue to be under sales pressure
On Monday, the Atlanta Fed President Raphael Bostic said that the aim of the FED monetary policy was to bring the policy interest to the neutral level as quickly as possible. This year, a total increase of six quarters points and two more increases to approach the neutral in 2024.
FED President Jerome Powell will make a speech at the Annual Economic Policy Conference organized by the National Business Economics Association at 19.00. Avatrade Chief Market Analyst Naeem underlines the following in a note he prepared on Monday:
As long as Jerome Powell says there will be more interest rate increase between 5 and 6 anywhere, the gold price will remain under the pressure of sales.
How are Bitcoin and Altcoins affected?
Since interest rates and FED’s hawk stance reduce the risk appetite, it has the potential to negatively affect the crypto market. On the other hand, when the FED is struggling with inflation, it is a matter of discussion, considering that it will show sensitivity not to cause stagnation. Analysts are divided into two at this point. Those who think that the markets digest a certain dose, while waiting for a new bull trend, the bears waiting for the risk appetite will deteriorate further intend to continue their hibernation for a while.
Leading crypto Bitcoin has seen a fluctuation of $ 1,000 in the last 24 hours, and at the time of the article, it was traded at 41,000 dollars with 1 %loss on a daily basis. Now investors are focused on the messages Jerome Powell will give in his speech.