Stagflation Fears Ahead of Powell’s Speech Hit Crypto and Stocks
The crypto and stock markets have taken a hit this week, primarily due too the anticipated speech by Fed Chair Jerome Powell at Jackson Hole.
Powell’s address will occur on Friday, and it’s expected to shape the future direction of financial markets. The global community of economists, central bankers, and policymakers gather annually at this event to discuss economic issues. Powell’s speech typically sets the tone for the remaining central bank meetings of the year.
This week’s briefing is especially notable as indicators suggest the U.S. could be drifting towards stagflation. Key signs include rising unemployment with fewer jobs created in July and steady inflation despite adjustments to tariff rates.Bitcoin prices have tumbled to $113,000,down from $124,200 earlier this month. Similarly, Ethereum dipped below $4,200.
- Market captainals have shrunken to $3.8 trillion across all cryptos.
- Stock indices like the Nasdaq 100, S&P 500, and Dow Jones have fallen by over 0.50%.
With these factors in play, many anticipate the Fed will cut interest rates in the coming months. Should Powell signal such moves, it might very well be a positive turn for both the crypto and stock markets.
Conversely, the markets could rally even after a stern statement from Powell.Markets tend to recover once the uncertainty surrounding events like these diminishes.
