Bitcoin (BTC) Rises As Focus Turns To Powell's Jackson Hole Speech: Analyst Says Crypto 'Does Not Look Healthy'

Major coins traded higher on Tuesday evening as the global cryptocurrency market cap rose 1.15% higher to $1.04 trillion at press time.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 0.6% -9.8% $21,534.51
Ethereum ETH/USD 2.5% -11.7% $1,661.26
Dogecoin DOGE/USD 0.8% -21% $0.07

Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
XDC Network (XDC) +14.9% $0.03
Chiliz (CHZ) +11.9% $0.25
Cosmos (ATOM) +11.1% ​​$12.31

See Also: How To Get Free Crypto

Why It Matters: Bitcoin and Ethereum were in the green at press time. The two largest coins by market cap rose even as other risk assets like stocks were volatile on Tuesday. At press time the S&P 500 and Nasdaq futures were seen flat.

Edward Moya, senior market analyst with OANDA noted that Bitcoin’s correlation with U.S. equities remains elevated. The analyst said that August flash PMI readings were below market expectations while new home sales fell in July. 

“Financial markets will remain in choppy waters until Fed Chair [Jerome Powell’s] Jackson hole speech on Friday. he may struggle to convince markets that he is comfortable with tightening policy and triggering a recession,” wrote Moya, in a note seen by Benzinga.

Moya said there’s a chance that Powell may sing a dovish tune at Jackson Hole and that could put an end to the crypto winter. 

“The base case for Jackson Hole still leans towards the hawkish side, as Powell will signal the Fed can continue to tighten even as the economy weakens. If Bitcoin holds the $20,000 level this week, that would be very constructive and could open the door to test the $25,000 region.”

Cryptocurrency trader Justin Bennett said the cryptocurrency market “does not look healthy overall.”

Bitcoin transactions are mostly taking place at a loss, according to Santiment. The market intelligence platform said traders have turned their attention to Ethereum and altcoins.

“This is the lowest ratio of profit taking we’ve seen on record,” tweeted Santiment

Glassnode said on Twitter that the number of Ethereum deposits into the Beacon Chain — the coordination mechanism of ETH 2.0 network —  is now “at a stable but macro low of 220 deposits/day.”

According to the on-chain analysis firm, this may be a signal that a “stable holding pattern” has been reached as investors look forward to a successful shift of Ethereum from a proof-of-work network to a proof-of-stake mechanism. The so-called Merge is scheduled for mid-September.

Read Next: Bitcoin Bull Scaramucci Says This Is What Needs To Happen For The Apex Crypto To Become Inflation Hedge

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