Bitcoin (BTC) has breached the $61,000 mark after weeks of trading between $59,000 and $61,000. This surge comes as investors eagerly await a speech by US Federal Reserve Chairman Jerome Powell at Jackson Hole, scheduled for 5:00 PM GMT today, which is anticipated to impact the market significantly.
Cryptocurrency Market Shows Signs of Recovery
The broader cryptocurrency market has shown resilience, with notable gains in specific altcoins. Cardano’s ADA experienced a 3% rise, and Avalanche‘s AVAX saw a 10% increase. The boost in AVAX followed Franklin Templeton’s decision to incorporate it into its OnChain US Government Money Market Fund (FOBXX), which uses public blockchain technology to record transactions and ownership. Access NEWSLINKER to get the latest technology news.
What Impact Will Powell’s Speech Have?
Meanwhile, Bitcoin exchange-traded funds (ETFs) listed in the US have maintained a six-day streak of gains, with $64 million in inflows. BlackRock’s IBIT ETF led the pack with $75 million in inflows. However, some analysts interpret the slowdown in overall ETF inflows as a potentially negative market signal.
In contrast, spot Ethereum (ETH) ETFs have faced significant outflows, totaling $458 million since their launch on July 23, with $800,000 in outflows recorded just on Thursday. This poor start has raised concerns among investors.
Key Insights for Investors
- Cardano and Avalanche are showing promising gains, signaling potential investment opportunities.
- Bitcoin ETFs continue to attract significant inflows, with BlackRock’s IBIT ETF leading the way.
- Spot Ethereum ETFs are experiencing record outflows, suggesting possible investor skepticism.
- Powell’s upcoming speech could heavily influence market sentiment and future interest rate policies.
Focus on Powell’s Address
Global financial markets are keenly watching Powell’s address at Jackson Hole for indications of upcoming interest rate cuts. Lower interest rates typically foster positive investor sentiment by making borrowing cheaper, thereby encouraging investment in riskier assets. Nonetheless, some analysts advise caution. Augustine Fan, President of SOFA Insights, noted that Powell might aim to maintain flexibility against the anticipated rate cuts by year-end.
As the market anticipates Powell’s speech, investors remain vigilant, ready to seize opportunities or mitigate risks based on the insights provided.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-exceeds-61000-driven-by-anticipation