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The cryptocurrency market is regaining its footing ahead of the key US meeting Jackson Hole

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News Tech: The prices of both bitcoin (BTC) and ethereum (ETH) have increased over the previous day, signalling cautious confidence in the crypto market ahead of the Jackson Hole Symposium, an important annual gathering of global central bankers.

With some anticipating that Powell will once again adopt a more hawkish position on monetary policy, it is expected that Powell will use his speech to further steer expectations on the Fed’s interest rate policy.

This Thursday, the US’s Jackson Hole Symposium is set to get underway. On Friday, US Federal Reserve (Fed) chairman Jerome Powell is anticipated to give a much regarded address regarding the future of the economy.

David Duong, head of institutional research at Coinbase, is one of many who has expressed concern about a hawkish Powell, writing in a recent market commentary that the Fed chair is likely to suggest a need for ongoing interest rate rises in the US.

Analysts from the Singapore-based cryptocurrency trading company QCP Capital expressed a similar viewpoint in a recent market report, noting that “Fed officials have been aggressively pushing back on the dovish narrative in the market.”

The result, according to the business, was “equities stagnating and trading down, rates moving higher, and USD surging across the board.” The most recent update came after a statement from the same company earlier in August that stated it anticipated the market to “remain supported” despite the Fed opposing “the dovish narrative.”

Michael Kramer, the founder of Mott Capital Management, and other market players concurred that Powell is likely to indicate that rate rises would continue, albeit more gradually. In a market report on Monday, Kramer stated:

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“I would anticipate Powell to put out fairly clearly that the rate of future rate rises may decrease but that they have a long way to go and are likely to remain high for some time,” said the author. Powell must “clearly clarify that rate decreases will not be in the future unless it is apparent that inflation is on a decreasing trend,” the author continued.

It is well known that Bitcoin and other significant cryptoassets correlate rather strongly with equities and other risky assets. As a result, larger-than-expected interest rate hikes are typically met with a negative response from cryptoassets. BTC was worth USD 21,402 as of Tuesday at 11:20 UTC, up 0.6% over the previous 24 hours but down 11.5% over the previous 7 days. ETH was trading at USD 1,604 at the same moment, down 16% for the week but up 2% for the day.

In the previous two weeks, investors have poured a net USD 11.7 billion into mutual funds and exchange-traded funds (ETFs), according to statistics from financial research firm Refinitiv Lipper quoted in the story. It also stated that corporate earnings have performed better than anticipated and that US inflation has lately moderated from recent highs, thereby reducing the likelihood of swift rate increases. The Wall Street Journal reported today that after many investors withdrew earlier in the summer, the US stock market has started to experience inflows once more.

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