Federal Reserve (Fed) Chairman Jerome Powell's speech on interest rates in Jackson Hole is said to be good news for the crypto market?
As proof, favorable inflation data has caused Bitcoin (BTC) and the entire crypto market to be in good shape, for example BTC increased by 4% while Ethereum (ETH) increased by more than 5%.
Powell's hawkish tone in a speech in Jackson Hole resulted in BTC falling nearly 6% in 24 hours, now trading at $19,800 at the early open earlier this week.
Meanwhile, Ethereum is down almost 10% trading around $1,500 with the possibility of going below $1,400.
Moreover, the market reacts through two different conditions. For example, the PCE data was revealed to be lower than expected and the CPI data showed that inflation was decreasing, but the market was in good shape after both data were released.
It is also expected that the Fed will move away from the policy of quantitative tightening and interest rate hikes.
However, dovish Minneapolis Fed president Neel Kashkari and Jerome Powell have taken an aggressive stance by revealing that fighting inflation is the Fed's main objective, even warning households and businesses about bad things to come.
Also understood, the market acted suddenly and fell significantly, even the S&P 500 fell more than 3%.
Additionally, cryptocurrency influencer Lark Davis revealed that Powell's 10-minute speech managed to wipe a trillion dollars from the stock and crypto markets.
According to Michael van de Poppe, CEO of Eight Global, the Fed cannot continue its hawkish policy as BTC and ETH could rebound when future inflation data reveals a decline in inflation rates.
