Odaily Planet Daily News: Crypto traders are closely monitoring remarks by Federal Reserve Chair Kevin Warsh at the Jackson Hole Global Central Bank Symposium, seeking clues about the future direction of monetary policy and liquidity.
Analysts expect Waugh to continue emphasizing a stance against inflation, but the Fed is unlikely to raise interest rates before the U.S. midterm elections in the short term. Mark Connors, Chief Investment Officer at Risk Dimensions, said Waugh is more likely to discuss adjustments to the Fed’s policy framework rather than signal specific rate actions, and expects "no rate hikes before the midterm elections."
Previously, Bitcoin rose over the past 10 days, primarily driven by measures from the U.S. Treasury to lower long-term interest rates and increase purchases of long-term U.S. Treasuries. Samir Kherbouche, Chief Investment Officer at Hashdex, stated that Bitcoin’s rally was “primarily a liquidity event,” with its price movement tied to global liquidity and changes in the long-term interest rate curve, rather than a single Federal Reserve meeting decision.
Currently, the Federal Funds Rate is maintained in the range of 3.50%–3.75%, and markets remain focused on inflationary pressures. The U.S. July Personal Consumption Expenditures (PCE) price index rose 3.7% year-over-year, exceeding the Federal Reserve’s 2% target and prompting some traders to increase their expectations for a rate hike in September.
In addition, this year’s Jackson Hole symposium focuses on financial innovation, payments, and policy, with the crypto market closely watching whether stablecoins, tokenized deposits, and blockchain-based payment infrastructure will receive a more favorable regulatory stance. If Walsh views these technologies as part of financial system innovation rather than sources of risk, smart contract networks and tokenized payment protocols may gain increased attention. (CoinDesk)