Crypto Stable, Investors Await Certainty from the Fed and Geopolitics
The cryptocurrency market moved steadily on Tuesday, with Bitcoin trading around $63,500 and Ethereum holding near $3,250. This performance occurred amid investor caution ahead of Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Symposium later this week. Market expectations still point to a possible interest rate cut in September, which could be a positive catalyst for digital assets. However, until certainty about monetary policy emerges, crypto movements are likely to be limited with low volatility.
Geopolitical factors also add another layer of uncertainty. US-led diplomatic efforts to foster a ceasefire in Ukraine could impact global market sentiment. If a peace agreement is reached, geopolitical risks could subside, leading to a slight decrease in interest in safe-haven assets like crypto. Conversely, if the conflict continues, Bitcoin and other digital assets could regain support from investors seeking diversification amidst the tense global environment.
Fundamentally, crypto adoption continues to increase with support from large institutions increasing exposure to digital assets. Capital flow data shows that there are still steady inflows into crypto-based investment products, although pressure from a stronger US dollar is holding back further rallies. Given this combination of macroeconomic and geopolitical factors, crypto is likely to remain in a short-term consolidation phase, awaiting a major catalyst from the Fed.
Source: Newsmaker.id
