Before Powell Speech, Crypto Stocks In Red

Jerome Powell Speech: In line with the crypto market sentiment, stocks related to the crypto industry declined at the market open ahead of Jerome Powell speech today. Cryptocurrencies are trading with hardly any fluctuation, as retail traders wait for the Fed chair’s comments at the The Economic Club of Washington DC. While the S&P 500 index opened with slight decline, stocks of crypto companies Coinbase and Microstrategy incurred losses due to the ongoing uncertainty. The traders are weighing their bets on whether Powell will sound a bearish sentiment with need to further increase rates.

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Powell’s speech gains high significance as the markets rallied after his comments on economy’s path towards disinflation. However, in what came as against the run of events, the US Bureau of Labor Statistics reported huge growth in the labor market. In fact, the growth was so robust that the number of jobs added in January led to the lowest unemployment rate in the country in over 50 years.

Coinbase, Microstrategy Stocks Dip

The Coinbase Global ($COIN) stock took a huge dip of 4.50%, in a clear indication of bearish sentiment in crypto market ahead of Powell speech. Similarly, MicroStrategy Inc ($MSTR) stock is showing signs of volatility with a net daily decline of 1%. Meanwhile, the Bitcoin (BTC) price continues to remain at the same level, just under the $23,000, with a daily gain of 0.77%, according to CoinGape price tracker.

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Technical indicators point to a BTC price drop as short term traders continue to trade in profits. As per the short-term holders Spent Output Profit Ratio (SOPR), traders are currently in profits and approaching the crucial selling level area. This means there is potential for a short sell off in coming weeks.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @BitcoinReddy and reach out to him at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.