August 26 is the long-awaited day for an important change in cryptocurrency market price movements. Later today, bears or bulls will take over the market, although everyone is hoping for a reversal of the bearish trend.
In the last release, Inflation data did not push the market down, instead, investors saw several price increases. But from this week’s price movements, it’s clear that that positive recovery has subsided.
Federal Reserve Annual Meeting
Every year, the Federal Reserve convenes a meeting with many economists. The chair of this meeting is usually Jackson Hole. The conference sets out its annual economic agenda.
MoM data on U.S. personal consumption spending will be disclosed during the meeting. This is important data regarding inflation, it will reveal the nature of the crisis. In addition, this data will indicate whether people are spending more or less, indicating a healthy or unhealthy economy.
In addition to announcing the MoM on spending on personal consumption, the cryptocurrency market is also worried about the Federal Reserve’s plan to curb inflation. Interested investors can watch Jerome Powel’s speech on the Kansas City Federal YouTube channel.
Why are crypto investors worried?
Neel Kashkari, CEO and President of the Minneapolis Fed made some comments a day before stating his expectations for the Approach of the Volcker Rule. During a period of raging inflation in the United States, Volcker produced two recessions that were short but large enough for the nation to be forced to stop spending and reduce inflation.
The Volcker Rule is a U.S. regulation that restricts banks from conducting certain investment activities with their own accounts, and limits banks’ dealings with hedge funds and private equity funds. The Volcker Rule is named after former Federal Reserve Chairman Paul Volcker.
By making such proposals, Kashkari believes that the Federal Reserve should create recessions to stop inflation. As one of the dovish Feds officials, his statements have worried many in the cryptocurrency sector. This is due to others, such as James Bullard, President of St. Petersburg. Louis, even the one with the toughest stance before.
If the current Federal Reserve chairman Jerome Powell agrees with others, the cryptocurrency market will move more bearish. But if he decides to deal with inflation peacefully, the cryptocurrency market will move positively.
From the above expectations, it is clear that the Federal Reserve has the potential to create a recession. Therefore, the outcome of the meeting now depends on how Jerome Powell will decide to address inflation, dovish or hawkish.
