Bitcoin Holds Steady at $80,000 as Traders Focus on Walsh's Speech
Bitcoin is currently holding steady around $80,000, with traders focusing on Federal Reserve Chairman Kevin Walsh's keynote speech at the Jackson Hole annual conference. The annual seminar hosted by the Kansas City Fed opened on Wednesday, and Walsh is set to speak on Friday morning. Current inflation remains well above the Fed's 2% target, with long-term borrowing costs near multi-year highs, as the Fed has kept the benchmark interest rate range at 3.5%-3.75% in recent months. Mark Connors, Chief Investment Officer at Risk Dimensions, expects Walsh to keep the option of raising interest rates open, but not to raise rates before the midterm elections. The July PCE inflation rate reached 3.7%, partly driven by rising energy prices following the Iran war. Samir Kerbage, Chief Investment Officer at Hashdex, stated that Bitcoin does not respond directly to the September interest rate decision but follows global liquidity and long-end yield curve trends, similar to the drivers of gold. Last week, the U.S. Treasury announced an increase in long-term Treasury purchases after the 30-year Treasury yield hit a 19-year high, which pushed Bitcoin higher. Kerbage noted that this recent rise is primarily a liquidity event. This year's Jackson Hole conference focuses on financial innovation, payments, and policy, with stablecoins, tokenized deposits, and faster settlement systems becoming the focal points of discussion. Kerbage believes that if Walsh views these technologies as part of the financial system rather than risks to be curtailed, the impact could extend beyond Bitcoin, with smart contract networks and protocols handling tokenized payments and settlements benefiting more directly from this shift.
-- Price
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