Published On: Thu, Oct 19th, 2023

BTC price increase above $28.6K before Fed Powell speech

BTC price increase above .6K before Fed Powell speech
BTC price increase above .6K before Fed Powell speech


Bitcoin Price Holds Steady Amid US Economic Policy Uncertainty

Bitcoin (BTC) maintained its price at $28,500 after the Wall Street opening on October 19, ahead of a significant speech about United States economic policy.

BTC/USD 1-hour chart
Bitcoin (BTC) 1-hour chart. Source: TradingView

Economic Expert Predicts Dovish Stance by Powell

Data from Cointelegraph Markets Pro and TradingView indicates that BTC’s price was strengthening in anticipation of Jerome Powell’s speech, Chair of the Federal Reserve, scheduled for 12 pm Eastern Time on Thursday. Powell’s remarks come at a time when 10-year US bond yields are at their highest since 2007.

Market experts are closely watching Powell’s language for clues about whether it will be dovish or hawkish, given concerns about a potential repeat of the 2008 Global Financial Crisis.

“Prediction: Powell is on the verge of saying or doing something which is very dovish which will cause a massive rally in the US Bond market.”

Despite inflation exceeding expectations in recent data, market odds from CME Group’s FedWatch Tool suggest an 88% chance of rates remaining unchanged at the next Federal Open Market Committee (FOMC) meeting on November 1, with only an 11% chance of a rate hike.

Fed target rate probabilities chart
Federal Reserve target rate probabilities chart. Source: CME Group

Economist Mohamed El-Erian suggests that rates should not rise again, which could benefit risk assets, including cryptocurrencies.

“The message to give right now is the Fed is done; we are done,” he said about the content of Powell’s speech.

Bitcoin Traders Monitor Liquidity Levels

Bitcoin’s price movements remained stable within liquidity boundaries, resulting in reduced volatility.

Data from on-chain monitoring resource Material Indicators confirms that significant support and resistance levels on the Binance order book have not changed despite recent volatility.

BTC/USD order book data for Binance
Bitcoin (BTC) order book data for Binance. Source: Material Indicators/X

Traders are closely watching key levels, including $28,000 and $29,000, as Bitcoin’s bullish trendline continues to provide support.

Please note that this article does not provide investment advice. All investments involve risk, and readers should conduct their own research before making any decisions.


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