Robert Steinadler, 5 months ago

Crypto market reacts neutral to Powell’s speech

Just a few minutes ago, Jerome Powell gave a speech in Stockholm during a symposium. The event was highly anticipated by many influencers and analysts alike. What did Powell have to say, why did the market react neutral to his remarks, and what do we have to expect this week?

Powell reaffirmed his stance

It is important to understand that Powell gave his speech on the broader topic of central banking along with other speakers, and a discussion was held about the talking points. Many traders and analysts anticipated that he would say something important or groundbreaking that would change the market.

Instead of revealing something new, Powell basically underlined how important it is that central banks and specifically the Fed are held accountable by democratic institutions. Other than that, he reaffirmed that central banks should use the tools that they have to adjust monetary policy to the market conditions.

The crypto market has rallied for the last 48 hours, but at the time of writing, there has been no significant reaction to Powell’s speech.

CPI could move the market

On Thursday, the US CPI data is released for December 2022. If expectations are met or the inflation has been even lower than expected, then crypto could potentially experience an extension of the ongoing relief. 

Most cryptos have lost somewhere between 80% and 99% value from their respective all-time highs in 2021. This is not the first time the market got crushed for a longer period of time, but some analysts fear that this crypto winter could be an exception and prolonged by difficult economic conditions.

However, since the market is already down badly, even the slightest pivot could indicate that we are at least ready for a strong bounce from the lows that we discovered in late 2022. While there are no guarantees that this will happen, the game plan is still clear and easy to read. The Fed is focused on a healthy US job market and lowering inflation down to a 2% target. If conditions are met, the chance is high that the Fed will pivot and recovery is possible.

Featured articles
Four trading strategies for crypto
Bitcoin and Ethereum: what are the differences?
What determines the Bitcoin price?
Related articles
Ripple acquires Metaco and has plans for a CBDC platform

May 19, 2023

Ripple is still fighting the SEC in court over the question of whether XRP is a security or not. While it is expected that the lawsuit will come to an end this year, the company is making big moves on the international market. Recently the company acquired Metaco, one of the big players in institutional custody solutions for digital assets. The deal fits perfectly into the bigger picture. Ripple has always focused on providing solutions for international payments and remittances. Solutions that are meant for institutional customers and not retail clients.

Trade anytime, anywhere

Boost your trading impact and reaction time in over 80+ cryptocurrencies via instant access to your portfolio with the LiteBit app.

App Store
Google Play Store
  • 2525 Ventures B.V.
  • 3014 DA Rotterdam
  • The Netherlands
More info
  • About LiteBit
  • Support
  • Sell
  • News
  • Education
Subscribe for updates

Sign up to stay informed via our email updates

Explore popular coins
© 2023 LiteBit - All rights reserved