The sessions of Jerome Powell, the President of the US Central Bank (FED), may lead to volatility in the price of Bitcoin on February 11 and 12 February and cause the price to turn to $ 100,000. This can end the horizontal course that has been going on for six days. So, how will Bitcoin (BTC) react to these explanations and upcoming macroeconomic developments? How will it affect crypto markets?
Does Powell’s speech carry BTC for $ 100?
The FED President Jerome Powell will testify to the Senate Banking Committee on Tuesday and to the Financial Services Committee of the House of Representatives the next day. This session is part of the president’s annual half -term speech against law makers, and for many reasons, it does not seem realistic to expect the price of Bitcoin to reach $ 100. Powell is expected to emphasize that the economy is durable, emphasizes that it will follow a data -oriented approach in the fight against inflation and aim to provide maximum employment. Apart from short -term volatility, these conversations seem to not affect Bitcoin value.
According to Tim Duy, SGH Macro Advisors, FED officials say they do not expect any interest rate reductions until the second half of the year. However, the fact that the January employment report is below expectations with 143 thousand may cause this prediction to change rapidly. A weak workforce report may require interest reduction, which may be a positive development for Bitcoin and crypto markets because they are risky assets.
Bloomberg economists said Powell would not consider changing interest rates without seeing a “real progress veya or without slimming in the labor market. If Powell exhibits such an approach to reduce inflation in his speeches and gives an interest rate reduction signal before June 2025, this may increase the risk -taking tendency and move the price of bitcoin up.
Potential Risks for Bitcoin
The data shows that the price of $ 77.38 million will be liquidated if Bitcoin’s price exceeds $ 97,722. This reveals that investors have strongly declaring positions with negative expectations. On the other hand, if the Bitcoin price drops below $ 96,174, a long position of $ 137 million will close. The position of approximately $ 247 million in the last 24 hours has been liquid. This reveals the extreme leverage structure of crypto markets. Interestingly, Bitcoin and Ethereum have made almost 90 million dollars of total liquidations.
