Powell Comments Fuel Bitcoin Bid
Bitcoin prices are softening a little this week on the back of the push higher seen last Friday. The move to the topside came in response to dovish comments from Fed chairman Powell who spoke at the bank’s Jackson Hole Symposium. Powell said that the time to adjust monetary policy had arrived, teeing up a rate cut at the September FOMC, and warned that that the bank has plenty of room to adjust rates given its current policy levels. As such, traders are now looking at the likelihood of a more aggressive easing campaign from the Fed, particularly if incoming employment data continues to trend lower.
Fresh ETF Demand Surge
Industry data last week showed that BTC ETF’s enjoyed their largest day of inflows for over a month on Friday with over $250 million flooding in. The move reflects a bullish uptick in institutional appetite on the back of those comments from Powell. Despite the inflows, however, BTC is yet to continue Friday’s bullish momentum this week.
US Elections Impact
One reason for the current lack of bullish conviction is uncertainty around the upcoming US elections in November. A surge in expectations through early summer of a likely Trump win was seen as a positive for BTC given Trump’s pro-crypto stance. However, with Harris now tying in some polls and leading in others, a Trump-driven crypto-boom is less likely, creating some drag on BTC prices.
Technical Views
BTC
The rally in BTC has seen the market breaking back above the 60,695 level with price now trading back up into the middle of the bear channel from YTD highs. While above 60,695, focus is on a test of the bear channel highs and the 69,355 level next in line with bullish momentum studies readings.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.