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It looks like good ol’ bitcoin (BTC) could be making a huge comeback if the current price is anything to go by. However, knowing how volatile the king token is, its resilience may well seem to be put to the test in the coming week.
Bitcoin $50k comeback
Bitcoin’s price has touched down on the $50,000 mark late Sunday which translates to a 72 percent recovery. This after the digital currency’s price nosedived to the $29,000 zone during the latter days of June.
With that in mind, traders are as of late musing about the possible events that could transpire in the coming days. The cryptocurrency community is wondering as to whether BTC has chewed off more than it can take with its recent bull run.
Over the weekend, people have expressed their concerns on social media about bitcoin not breaking through the $50,000. Fortunately, the digital currency managed to cling to the said price zone as it is still doing so as of writing.
Further, a notable trader – Pentoshi (@Pentoshi1) — took to Twitter and stated that if bitcoin can break out from that, people who are overtrading will be losing their BTCs adding that hodlers will win. The trader went on to state that he already “said it one other time before it did a relentless 6x.” Pentoshi also gave a piece of advice to traders to be knowledgeable when and when not to trade revealing that his strategy is to do nothing when it happens.
The Fed event
The U.S. Fed, on the other hand, is all set for its annual summit this year, though, it will be done virtually. The event – known as the Jackson Hole Economic Symposium, is said to highlight Chairman Jerome Powell’s speech dubbed the “Macroeconomic Policy in an Uneven Economy.” That said, macro cues will pretty much all come from the Fed this week. Also, it is believed that the event is likely to zero in on changes regarding economic policy caused by the ongoing pandemic.
In line with this, markets need to be oriented as to whether any tapering of asset purchases is on the cards, and when it will eventually happen.
‘Heavy volatility’ incoming?
Founder and CEO of Quantum Economics Mati Greenspan wrote about the upcoming event late last week as he gave folks a heads up about an unwinding Fed that could be presenting more than a few problems to the sector of cryptocurrency. He stated that people should be expecting heavy volatility by the time Powell’s (“J-Pow” to some) speech has been blurted out since he’s anticipating that it will be used to layout his plans to normalize monetary policy adding that it will be the main focus of the entirety of the financial markets throughout the coming week.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
