Bitcoin price clings to $20,000 as analyst says Fed 'buried' soft landing
US inflation discourse shifts away from ease of control in what could still weigh on asset performance at risk.
Market Update
Bitcoin (BTC) fluctuated around the $20,000 mark through August 31 as the outlook for US inflation darkened.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping again below the high of the last halving cycle overnight, only to regain lost ground to hit $20,300 that day .
The range moves accompanied modest rallies in US equities, with the S&P 500 and Nasdaq Composite indices up 0.15% and 0.6%, respectively, in the first hour of trading.
Concerns about the Federal Reserve's plans to fight inflation after Chairman Jerome Powell's bleak speech last week nonetheless persisted.
Despite Powell's earlier rhetoric, Diane Swonk, chief economist at KPMG, told mainstream media that the whole concept of a "soft landing" for the US economy was now abandoned.
Powell's speech had actually 'buried the concept of a soft landing,' she told Bloomberg, and showed that the Fed was instead planning to control growth to 'reduce inflation' .
"It's a torturous process but less torturous and less painful than a sharp recession," Swonk added.
With the mood thus firmly conservative on risk assets, focus also remained on the strength of the dollar as it continued to hover around 20-year highs.
“For risky assets, including Bitcoin, having a stable dollar or a weak dollar is essential, as upward pressure can be expected in the markets,” said Mic...
US inflation discourse shifts away from ease of control in what could still weigh on asset performance at risk.
Market Update
Bitcoin (BTC) fluctuated around the $20,000 mark through August 31 as the outlook for US inflation darkened.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping again below the high of the last halving cycle overnight, only to regain lost ground to hit $20,300 that day .
The range moves accompanied modest rallies in US equities, with the S&P 500 and Nasdaq Composite indices up 0.15% and 0.6%, respectively, in the first hour of trading.
Concerns about the Federal Reserve's plans to fight inflation after Chairman Jerome Powell's bleak speech last week nonetheless persisted.
Despite Powell's earlier rhetoric, Diane Swonk, chief economist at KPMG, told mainstream media that the whole concept of a "soft landing" for the US economy was now abandoned.
Powell's speech had actually 'buried the concept of a soft landing,' she told Bloomberg, and showed that the Fed was instead planning to control growth to 'reduce inflation' .
"It's a torturous process but less torturous and less painful than a sharp recession," Swonk added.
With the mood thus firmly conservative on risk assets, focus also remained on the strength of the dollar as it continued to hover around 20-year highs.
“For risky assets, including Bitcoin, having a stable dollar or a weak dollar is essential, as upward pressure can be expected in the markets,” said Mic...
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