Bitcoin (BTC) jumped $ 1,500 yesterday, August 27th, after US Federal Reserve Chairman Jerome Powell made “very positive” announcements at a conference event.
Fed is fueling the markets
In a speech at the Jackson Hole Conference, Powell made it clear that the Federal Reserve will slowly cut back on its bond purchases. A strategy that the central bank had relied on since the outbreak of the corona crisis.
The financial markets have been waiting for this signal for a long time, but the central bank chief is deliberately not giving an exact start date for this step.
“Even after we finish our bond purchases, our long-term bonds will continue to provide tailwinds for the financial market,” Powell said. To this end, he explains:
“The exact timing and speed of the stop in purchases is not a clue that the key interest rate will rise soon, because we want to proceed as carefully as possible.”
The fear is that the end of bond purchases will take the wind out of the sails of the stock market, in particular, which is why the soothing words of the central bank chief were received very benevolently on the stock market and the S&P 500 was even able to soar to a new record high.
The US dollar was again somewhat weaker, while Bitcoin was able to achieve an intermittent high of over 48,400 US dollars.
The crypto experts were correspondingly optimistic.
“Buckle up, the futures expired at the end of the month, and Bitcoin is on the way up,” as Scott Melker said of the current situation in view of the considerable open interest of 2 billion US dollars commented.
His colleague Ryan Cantering Clark rated Powell’s announcements are “very positive”, which is why he is now advising to buy new long positions.
Back on the uptrend?
But the signs for Bitcoin are currently good, even outside the “Fed”.
So meant Crypto expert William Clemente said on Friday that the price is currently making an important upward movement.
“After partial profits were booked out at the beginning of the week, Bitcoin is now apparently making another upward movement,” as he sums up in view of the current data situation.
“Hopefully it will continue like this for the next few days, but I’m already in a positive mood for the next 1 – 2 weeks.”
As Cointelegraph had reported, the analysts expect a new upward trend for Q4 at the latest.