Thu. Mar 16th, 2023

Bloomberg, a U.S. economic media outlet, said in a report on August 30th (local time) that the price of Bitcoin, which has fallen since the Jackson Hole meeting, may have reached the bottom of the trend. The Jackson Hole Meeting is an annual economic policy symposium held in Wyoming by the U.S. Federal Bank of Kansas City.

Bloomberg pointed out that market watchers originally expected the downward trend of Bitcoin to occur even more significantly after the Jackson Hole meeting. The drop in bitcoin prices was expected to be more unstable compared to traditional assets such as the stock market at a time when price volatility was severe in the past.
Jerome Powell, chairman of the U.S. Federal Reserve, said at a Jackson Hole meeting on August 26 (local time) that it was not time to stop or take a break from austerity, and the Fed’s stance to continue its high-intensity monetary policy caused a 6% drop in Bitcoin prices.

Bloomberg analyzed that the current market price may have been at the bottom of the trend, shedding light on the fact that Bitcoin’s price supports $20,000 (about 26.86 million won) each despite Chairman Jerome Powell’s continued remarks on tightening.
“Bitcoin is recovering to the $20,000 level despite a widespread weakness in the stock market,” said Edward Moya, chief market analyst at OANDA, a foreign exchange trader, through Bloomberg. “It is a positive sign that Bitcoin has shown resilience despite a plunge in the stock market.”
Bloomberg also added that the psychological price support of cryptocurrency market participants for Bitcoin is $20,000.

The “variability” was another factor in Bloomberg’s close proximity to the bottom market.
Bloomberg said, “The average daily increase and decrease of Bitcoin has been compressed to 1.4% and 2.4% this month, respectively,” adding, “The fact that the fluctuation width has decreased can support the view that the market price is close to the bottom.”
However, he was wary of hasty judgments, pointing out that Bitcoin’s previous September trend did not produce positive results.

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