Is volatility back with a vengeance for stocks and Bitcoin?

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Last Updated on 6 November 2023 by CryptoTips.eu

This week’s economic calendar (we are still in August) looks very busy and American all of a sudden. It comes just after we closed out the worst week for crypto since the fall of FTX last year. The question that is therefore on everyone’s lips is the following: is volatility back for crypto markets (and stock exchanges) or are we going to calmly enter September?

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Consolidation

In the past few days, the damage to Bitcoin has been contained since last week’s 10% crash. There are already rumors that we will see consolidation in the coming weeks as that seems to be the trend of the year. No steady moves down or up, simply crashes and bullruns that last only a day or so.

However, market data coming out this week could throw a spanner in the works for Bitcoin and the stock exchanges as Jackson Hole’s annual high mass begins.

Wyoming

For those who don’t know, Jackson Hole is a small town in the US state of Wyoming where every year the largest central bankers (US, EU, UK and Canada) have a meeting, take a look at interest rates and inflation rates and then give speeches about the whole thing.

Last year, Jackson Hole became known for coinciding with the election of Liz Truss as British Prime Minister. Inflation rates for the United States and Europe were then much higher than now and interest rates much lower.

Bitcoin was trading around $22k at the time, moving lower towards the end of the month as economic doomsdays were being predicted from Jackson Hole.

At the end of this week, on Friday, Jerome Powell, the central banker of the United States, will deliver a long-awaited speech. At that moment, we will find out whether interest rates in his country will remain high for a long time or whether he thinks it is time to lower them. Don’t expect too much movement until then, but a lot of movement from then on.

So is volatility back? Not sure, but if Powell delivers a bad speech, then yes.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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