Investing.com – As has been the case with most risk assets, the initially gained against Powell’s speech on Tuesday, but then quickly reversed its gains. However, unlike other instruments such as the Euro Dollar which remain under pressure, the BTC has managed to start rising again.
The cryptocurrency indeed peaked at a high of $23,430 last night, and remains above $23,000, at $23,200 more precisely this Wednesday morning at 7:45 CET.
Powell’s speech generates a spike in volatility on the
Recall that the Chairman of the Federal Reserve, Jerome Powell, declared that the central bank is beginning to control inflation, nevertheless warning in a second step that it will take a long time to completely control the evolution of prices.
Bitcoin initially rose when the head of the US central bank said inflation would come down, but then declined on rate comments.
Responding to questions from asset manager Carlyle Group co-founder David Rubenstein at the event, the Fed boss said that “there is no guarantee at all” that inflation “will go away easily and without pain”.
“This process is probably going to take quite a bit of time,” he said. “It will not go smoothly.”
Note that following Powell’s speech, the market’s perceived probability of a Fed rate hike of 0.50% next month (instead of 0.25%) jumped to 9.2%, from 3 .3% the day before, and 0% last week following the Fed meeting, according to the Fed Rate Barometer investing.com.
However, after an initial bearish reaction, Bitcoin finally brushed aside Powell’s speech to climb to a 4-day high.
What to watch for in order to approach Bitcoin well this Wednesday
As for Wednesday, no key statistics are expected in the economic calendar, but Bitcoin will likely be influenced by several speeches from Fed members, including Barr at 4 p.m. and Waller at 7:45 p.m.
Finally, from a chart perspective, the first support visible on the Bitcoin daily chart is the $22,500 threshold, while on the upside, $23,000 and yesterday’s high at 23,430 will be the first potential resistances.