- The price of bitcoin probably bottomed out after Jerome Powell’s speech at the Jackson Hole Symposium.
- Wall Street analysts believe that the comments of the chairman of the US Federal Reserve on financial markets provoked a fall in the price of bitcoin.
- Bitcoin price starts an uptrend targeting $21,895, analysts remain bullish on BTC.
The price of bitcoin bottomed after Jerome Powell’s speech at the Jackson Hole Economics Symposium. After the price of the asset fell nearly 6% over the past week, Wall Street analysts believe that bitcoin has reached its bottom.
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Why Jerome Powell’s Economics Symposium Speech Is Key to Bitcoin
The summer rally in the US stock market ended with hawkish comments from the chairman of the Federal Reserve at the annual central bank symposium in Jackson Hole. Jerome Powell, chairman of the US Federal Reserve, reiterated that fighting inflation is the Fed’s top priority and that while a little “pain” is needed, the central bank will continue to raise interest rates.
The central bank’s hawkish comment sent major U.S. stock indices down and sparked a cryptocurrency bloodbath. Nasdaq and bitcoin, a digital asset that has a high correlation with tech stocks, have fallen nearly 6% over the same period.
The key message from the Federal Reserve was that “aggressive central bank economic policies will help curb inflation” and this is one of the main reasons for Bitcoin’s price drop this week. Cautious investors have withdrawn capital from speculative and volatile assets such as Bitcoin, Ethereum, and Shiba Inu and Dogecoin meme coins.
Wall Street analysts believe that the price of bitcoin bottomed out at $19,590 as a result of the bloodbath caused by Powell’s speech. While market watchers feared a sharp fall in bitcoin amid empty stocks, analysts are now confident that the fall in bitcoin’s price has come to an end.
Analysts Predict Bitcoin Price to Rise to $21,895
RektProof, a crypto analyst and trader, assessed the Bitcoin price trend and predicted a rise to $21,895. The price of bitcoin is ready to win back its losses and return above the $21,500 level.
Bitcoin perpetual futures chart
Analysts at Netcost-Security share RektProof’s optimistic forecast and predict a recovery in the price of bitcoin. Analysts have set a target value for the asset at $22,500. For more information and the main prize categories, watch the video below:
Edward Moya, senior market analyst at Forex Exchange Oanda, told CoinDesk TV that more hodlers’ money is starting to increase their exposure and strengthen their position. The hodlers are no longer sitting and there is a chance that the crypto winter is over.
Moya believes the cryptocurrency is poised to bounce back after the market crashed last week. Analysts at research firm Delphi Digital are predicting a fall in the price of bitcoin to $10,000, just like in previous cycles. However, Wall Street analysts believe that Bitcoin is ready to go higher. Bitcoin has emerged from choppy waters.