Bitcoin (BTC) Rises Ahead of Powell’s Jackson Hole Speech: Analyst Drops Crypto Cheat Sheet, Stocks

Major coins were in the green Thursday night as the global cryptocurrency market capitalization rose 0.7% to $1.04 trillion.

See also: How to get free crypto

Why it matters: Ethereum was the front-runner in terms of gains among major coins at press time. Cryptocurrencies were up ahead of a key address from the US Federal Reserve Chair Jerome Powell.

Ahead of Powell’s speech, stock futures were seen trading flat. But for the day, the Nasdaq and S&P 500 rose 1.4% and 1.7%, respectively, as reports emerged that the U.S. and China are nearing a deal that would allow audit inspections of New York-listed Chinese companies.

OANDA senior market analyst Edward Moya pointed to a drop in jobless claims and a slight revision higher in both headline GDP and personal consumption data to say it was a “perfect appetizer” for Friday’s hawkish Powell speech.

“The Fed is poised to be locked in tightening mode until inflation subsides and the latest inflation all but confirms that won’t happen until next year. The labor market is still too strong and that will continue to drive up wages and cause the Fed to remain aggressive by raising interest rates.”

“Bitcoin is consolidating ahead of Jackson Hole, but still comfortably above the $20,000 level. The correlation with Bitcoin and stocks is not holding today, but that’s mainly because the move higher in stocks is a story of Chinese ADRs and not a broader moves for tech stocks,” the analyst wrote in a note seen by Benzinga.

Michael van de Poppe said that Bitcoin is “boring” at the moment, but tomorrow it could “result in false outs”. The cryptocurrency trader said that the apex coin tested $21,800 and that would cause it to accelerate to $23,200. The $21,000 level is crucial for the coin.

#Bitcoin is boring, as we expect reactions based on tomorrow’s news (PCE figures and Powell’s speech).

Overall on a support block now and;
– Tomorrow it may result in false results.

– Testing of $21.8k is likely to result in acceleration to $23.2k.
– Important to stay above $21K. pic.twitter.com/LYNRnHpnkh

— Michaël van de Poppe (@CryptoMichNL) 25 August 2022

Entrepreneur Justin Bennett tweeted the correlation between the monetary base and risk assets on Friday. He said, “Don’t fight the Fed!”

Want a cheat sheet for #stock and #crypto?

The monetary base (yellow line) drives risk assets.

To reduce inflation, the Fed must lower the yellow line.

If that line falls, the blue line (S&P 500) follows.

If the S&P falls, #Bitcoin following.

Don’t fight the Fed! pic.twitter.com/QCJW2YXIfi

— Justin Bennett (@JustinBennettFX) 25 August 2022

Bitcoin’s adjusted Output Profit ratio – a ratio of used output that has been in profit for a specified period – continues to face “heavy resistance” at the breakeven threshold of 1.0, Glassnode tweeted.

“This [suggests BTC] investors take profits during bear market rallies, using coins at their cost base to simply “get their money back,” the research firm said on the chain.

#Bitcoin aSOPR continues to face major resistance at the break-even threshold of 1.0.

This suggests $BTC investors take profits during bear market rallies, and use coins at their cost basis to simply “get their money back”.

Live Chart: pic.twitter.com/e6IgX5CwMR

— glassnode (@glassnode) 25 August 2022

On the Ethereum side, the price of the second largest coin is closely correlated with the S&P500 amid global uncertainty, Santiment said.

“The supply of $ETH on exchanges increased sharply just before the drop last week, and network growth has fallen back to 3-month lows,” the market intelligence platform tweeted.

#Ethereum‘s price continues to follow closely #SP500 as global uncertainty continues. The supply of $ETH on the exchanges rose sharply just before the drop last week, and network growth has fallen back to 3-month lows. Our full analysis: pic.twitter.com/q8TvXdViqW

— Santiment (@santimentfeed) 25 August 2022

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