Jerome Powell Prepares to Speak: Will Cryptocurrency Continue to Plummet or Recover?

Jerome Powell's speech marks the end of the FOMC meeting. Powell will address the Fed's economic decision and discuss the monetary policy report today, as the meeting is ongoing. The interest rate decision could make or break the crypto market, and its current situation is not very promising. So what can we expect from the conference? Let's discuss. The crypto market collapsed ahead of Jerome Powell's speech today. The speech or press conference by Fed Chairman Jerome Powell will begin at 2:30 PM Eastern Time today, Wednesday, June 18. The meeting is an event occurring after the ongoing FOMC meeting in Washington, DC. Notably, the Fed is expected to keep interest rates at 4.25%-4.50%, causing a bit of disruption in the crypto market. Macroeconomic events such as the Fed meeting and interest rate decisions have a serious impact on the financial market. And because there is a high likelihood that the outcome will be contrary to investors' expectations, there is selling pressure in building the market. More importantly, the Israel-Iran conflict has affected investor sentiment. The total market capitalization has decreased by 1.23% to 3.29 trillion dollars, the price of Bitcoin has dropped to 105 thousand dollars, and most digital assets have declined similarly. However, further crashes may form depending on the Fed's decision. What can we expect from Jerome Powell's speech today? The FOMC meeting may end with interest rates unchanged despite pressure from Donald Trump. Inflation slightly increased to 2.4% in May from 2.3% in April, the strong labor market, and the Fed's "wait-and-see" approach indicate a 99% chance that they will maintain the Fed's interest rates this month. However, some cryptocurrency analysts like Ash believe that the ongoing conflict between Israel and Iran will lead to an increase in inflation, as oil prices have soared. Therefore, Jerome Powell will address this issue at the conference. Furthermore, he predicts that the price of Bitcoin will recover in a V-shape if Powell appears dovish. However, if Powell talks about rising inflation, the crypto market will collapse further, along with other markets.

Another analyst, Michaël, added that the FOMC meeting often provides a bottom for Bitcoin the day before. He also urged investors to view this temporary decline as a buying opportunity, especially as the M2 supply is about to increase significantly. Currently, the price of Bitcoin is very volatile and cannot break through the main resistance level of 110,000 dollars. Jerome Powell's speech could push the price up to 112,000 dollars if it recovers to 108,000 dollars or drops to 100,000 dollars.