Signals from Jackson Hole will set the trend for cryptocurrencies

Bitcoin has rolled back to the realized price (the average purchase price of all issued coins) $21,700 in the vicinity of which will drift until the end of the working week, when the symposium will take place in Jackson Hole. Investors will be waiting for hints from Fed Chairman Jerome Powell on Friday regarding the size of the key rate hike at the next meeting, as well as the price that monetary authorities are willing to pay for reducing inflation.

If the first is unlikely to sound specifically in view of the upcoming reports on the labor market and consumer price dynamics before the decision in September, then the second may be in tune with the opinions already voiced by the Fed representatives, who did not give the bulls reasons for optimism. It is likely that Powell will be a little more “hawkish” after the July meeting, which may lead to a new round of risk aversion, the start of which began last Friday. A 10% dip, which nullified all the achievements over the previous four weeks, significantly increased the chances of a return to the June minimum ($17,600). This week, the $20,000 – $21,000 zone may limit the decline in quotations, but only before the speech of the head of the Fed.

The situation in Ethereum may develop in a similar way – the merger expected on September 15-16 (The Merge, the transition to the Proof-of-Stake consensus algorithm), as events last week showed, did not become immune from sales. Institutional investors in the cryptocurrency market are dependent on what is happening on Wall Street. The expiration of options has passed, the liquidation of shorts has stopped earlier – the road down is open. In turn, on-chain statistics have not improved enough to make it possible to forget about the situation on the stock market.