Stagnant Virtual Asset Market...All Eyes on Powell’s Remarks

Most virtual assets (cryptocurrencies), including Bitcoin (BTC), have entered a correction phase as the market turns its attention to the Jackson Hole speech by the Fed to be held on the 22nd.

According to Forbes on the 19th (KST), Ryan Lavaglia, a partner at Rice Capital, said, “After certain key assets hit record highs, investors took profits,” adding, “This Jackson Hole meeting will be a key watershed for gauging the Fed’s rate decision in September.”

The U.S. interest rate is an important indicator that determines investor sentiment toward risk assets, including virtual assets. If the rate rises or is held steady, it can negatively impact sentiment; if the rate is lowered, it may positively influence sentiment. Currently, the market is predicting a 0.25% rate cut by the Fed in September.

Tom Bruni, managing editor of StockTwits, also emphasized, “With Bitcoin failing to maintain its upward momentum, investors have turned to the sidelines,” adding, “If Fed Chair Jerome Powell’s remarks dampen expectations for a September rate cut, additional downward pressure could be exerted on Bitcoin.”

Some speculate that Powell will continue to clash with U.S. President Donald Trump. Greg Magadini, director at Eberdata, said, “Powell is likely to highlight the Fed’s independence in the face of pressure from the White House and others in government to lower interest rates,” adding, “This Jackson Hole meeting is expected to be the biggest headline of the week.”

Meanwhile, market experts identified inflows into spot ETFs, expansion of institutional investment, regulatory and legislative trends, and capital shifts into altcoins as additional variables affecting Bitcoin.