- 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.
Also read: Decode Bitcoin’s next move with IMF officials, rally to $60,000 coming?
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.