Major cryptocurrencies traded with mixed results on Sunday evening, reacting to Federal Reserve Chair Jerome Powell’s speech. Powell emphasized the importance of maintaining strict financial conditions and indicated a potential future increase in interest rates.
In his opening remarks at the annual Jackson Hole Economic Policy Symposium, Powell offered perspectives on the economic outlook and monetary policy.
“We are prepared to raise rates further if appropriate,” Powell stated, reflecting the Fed’s vigilant stance on getting back to its price stability goal. He emphasized the commitment to keep rates at a restrictive level until a sustainable decline in inflation is observed.
Currently, the global crypto market capitalization stands at $1.05 trillion, a 0.17% decrease in the last day.
Stock futures started the last trading week of August on a positive note, with a slight increase. S&P 500 futures and Nasdaq-100 futures both saw gains of 0.14% and 0.7% respectively. This comes after a successful trading session fueled by recent statements made by Federal Reserve Chair Powell.
Crypto analyst Michael Van De Poppe discusses the longest bear market in history for Bitcoin. He said despite the current feeling of uncertainty and a possible end to the bull cycle, it’s important to consider historical patterns in the market.
Bitcoin has historically gone through cycles that include periods of expansion, significant corrections, accumulation, and renewed expansion. However, each cycle varies in length, as shown in the chart.
Comparatively, the current bear market is similar to the one experienced in 2015. It involves a sideways action and a gradual loss of faith in crypto, despite the solid fundamental growth.
At present, Van de Poppe says the price of Bitcoin is far from its peak valuation in November ’21, having decreased by over 50%. This bear market has been ongoing for 490 days.
“I know how it feels. Most people who read this have been experiencing their first heavy bear cycle and it hurts. It did the same for me in 2018/2019, or the COVID-crash, or the current bear market.”
The longest bear market in history for #Bitcoin
It might feel like a ghost town in crypto. It might feel like there’s not even going to be a bull cycle anymore and I understand why these thoughts are there.
Well, people base their decisions on history. 👇… pic.twitter.com/Ljtv9wmw12
— Michaël van de Poppe (@CryptoMichNL) August 27, 2023
Pseudonymous analyst DonAlt shared a cautious perspective regarding the potential approval of a Bitcoin ETF. He emphasizes that sellers may view this as an opportunity to offload their BTC holdings.
“We didn’t have the ETF denied, but we still went all the way back to where it was announced. So either you’re getting the biggest discount here of all time or we’re going to get shi*t news,” the analyst said.
On the other hand, if the ETF is denied, DonAlt predicts that prices could plummet to around $20,000 – $19,000.
Produced in association with Benzinga