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Approximately 2 hours from now, Fed Chairman Powell will make some statements. Some investors are getting excited about this. In recent years, macro developments have become more important for the cryptocurrency markets. Interest rate hikes, inflation data, Fed statements, and everything else. So, what will happen in the coming days?
Powell’s Speech and Crypto
Fed Chairman Powell will give a speech that will last about 60 minutes in 2 hours. The speech will mainly proceed in a question and answer format. It will be a Town Hall meeting attended by educators and teachers. It is not expected to provide strong and clear messages about the economy. So, there is not much reason for investors to get excited.
The Fed announcement states;
“Federal Reserve Board Chair Jerome H. Powell will meet with educators in Washington D.C. and nationwide through webcast on September 28, 2023, at 4:00 p.m. ET. The Chair will answer questions from both in-person and virtual participants from across the country.
The event will last approximately 1 hour.”
Town Hall meetings are widely attended events. Powell will deliver the opening speech here.
What to Expect for Cryptocurrencies
Bitcoin price is still struggling to maintain $27,000 as of the time of writing. However, unless the $27,300 support is maintained, we cannot escape the feeling that we are in the middle of another unsuccessful attempt. Open interest increases by millions of dollars and BTC suddenly drops, positions are liquidated. This is what we have been seeing for a while now.
Today’s macro data was relatively moderate. However, the data to be released on Friday, especially shortly before the monthly close, is important.
The expectation for the Core Personal Consumption Expenditures data is 3.9% and the PMI data will be released at 3:30 pm, which is an unofficial inflation indicator for the Fed. A surprising upward figure here could bring a significant bearish wave to the markets. PMI data will be released on Monday and shed light on the current state of the economy. On Wednesday, there is also OPEC.
October 6th, Friday represents another critical period, just like tomorrow. Average hourly earnings are one of the most important topics on the macro front. The Fed has stated that it contributes significantly to inflation and needs to decline. On the same day, the NFP data will also be announced. In short, we will see very clear data on employment and wages, wage increases in the next 7 days. These will shape the expectations for the November 1st meeting. Of course, they will also influence cryptocurrencies.
