Bitcoin price remained steady at $28,534 on October 19, as it faced pressure around the $28,500 mark.
The cryptocurrency market was eagerly awaiting a crucial speech by Jerome Powell, the Chair of the Federal Reserve, regarding U.S. economic policy. Bitcoin traders closely monitored the situation as high U.S. bond yields created a stir in the financial markets.
Jerome Powell’s Upcoming Speech
Jerome Powell was scheduled to address the Economic Club of New York at 12 pm Eastern Time on Thursday. His speech held significant importance due to the complex macroeconomic scenario, primarily driven by 10-year U.S. bond yields reaching their highest levels since 2007.
Powell’s language, whether dovish or hawkish, was a major point of discussion in light of the 2008 Global Financial Crisis still being a concern for market participants.
Market Expectations For Bitcoin
Market experts, such as asset management mentor Lawrence “Larry” Lepard, believed that Powell might take a “very dovish” stance in his speech to address the ongoing bond rout and potentially trigger a substantial rally in the U.S. Bond market.
Previously, the Federal Reserve had hinted at a prolonged period of high interest rates due to persistent inflation beyond expectations.
However, the latest data from CME Group’s FedWatch Tool indicated that market odds of interest rates remaining at current levels during the upcoming meeting of the Federal Open Market Committee (FOMC) on November 1 were as high as 88%, with only an 11% chance of a further rate hike.
In addition, economist Mohamed El-Erian, speaking on CNBC’s Squawk Box segment, suggested that rates should not rise again. He emphasized that the message Powell should convey is that the Fed is done with raising rates.
Bitcoin Price and Liquidity Monitoring
Amidst the anticipation of Powell’s speech, Bitcoin’s price movements appeared relatively stable, with limited volatility. On-chain monitoring data from Material Indicators confirmed that notable support and resistance levels on the Binance order book remained unchanged despite earlier week volatility.
Furthermore, Bitcoin traders were keeping a close watch for significant price levels further from the current spot price. Notable targets included $28,000 and $29,000.
The stability of Bitcoin’s price at $28,534, the anticipation surrounding Powell’s speech, and the complex macroeconomic environment due to rising bond yields all contributed to the cryptocurrency market’s cautious stance.