- Bitcoin price likely hit a floor after Jerome Powell’s speech at the Jackson Hole symposium.
- Wall Street analysts believe the US Federal Reserve chair’s comments on financial markets triggered a Bitcoin price drop.
- Bitcoin price begins an uptrend, eyeing the target at $21,895 level, analysts remain bullish on BTC.
Bitcoin price hit a floor after Jerome Powell’s speech at the Jackson Hole Economic Symposium. After the asset’s price declined nearly 6% over the past week, Wall Street analysts believe Bitcoin has hit its bottom.
Why Jerome Powell’s speech at the Economic Symposium is key to Bitcoin
The US Stock Market’s summer rally ended with the Federal Reserve chair’s hawkish comments at the central bank’s annual symposium in Jackson Hole. Jerome Powell, the US Federal Reserve chair reiterated that fighting inflation is the Fed’s top priority and that even if some “pain” is required, the central bank would continue raising interest rates.
The hawkish commentary from the central bank resulted in a decline in top US stock indices and triggered a bloodbath in crypto. Tech heavy Nasdaq and Bitcoin, the digital asset that enjoys high correlation with tech stocks, declined nearly 6% in the same period.
The Federal Reserve’s key message was that “Aggressive economic policy from the central bank will help curb inflation,” and this is one of the key causes of the Bitcoin price decline this week. Wary investors have pulled capital out of speculative and volatile assets like Bitcoin, Ethereum and meme coins Shiba Inu and Dogecoin.
Wall Street analysts believe Bitcoin price has hit its bottom at $19,590, in the bloodbath triggered by Powell’s speech. While market watchers feared a steep decline in Bitcoin, amid bleeding stocks, analysts are now convinced the decline in Bitcoin price has reached an end.
Analysts predict Bitcoin price rally to $21,895
RektProof, a crypto analyst and trader evaluated the Bitcoin price trend and predicted a rally to $21,895. Bitcoin price is ready to recoup its losses and make a comeback above the $21,500 level.
Bitcoin Perpetual Futures chart
FXStreet analysts share RektProof’s bullish outlook and predict a recovery rally in Bitcoin price. Analysts have set a target of $22,500 for the asset. For more information and key price levels, check the video below:
Edward Moya, senior market analyst at foreign exchange Oanda told CoinDesk TV that more of the hodler money is starting to increase their exposure and add to their positions. Hodlers are no longer sitting back and there is a chance that the crypto winter could be over.
Moya believes crypto is ready to recover from its decline, after last week’s market wipeout. Analysts at the crypto research firm Delphi Digital predicted a Bitcoin price decline to $10,000, like previous cycles. However, Wall Street analysts believe Bitcoin is ready to head higher. Bitcoin is out of choppy waters.
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