Investor Caution Grows Ahead of Key FOMC Meeting and Powell Address

By Omkar Godbole (All times ET unless otherwise specified) Following late Tuesday's lows, bitcoin ($85,527.90) and ether ($2,830.78) have slightly rebounded, although both the CoinDesk 20 and CoinDesk 80 indexes have dropped over 24 hours, indicating a broader market decline. Among the top 100 coins, only OKB and LINK have achieved gains exceeding 3%. The analyst community is intently focused on Federal Reserve Chair Jerome Powell's upcoming speech at Jackson Hole. "The recent downturn suggests that short-term positioning remains vulnerable," according to Singapore-based QCP Capital. "Risk assets may be susceptible to further fluctuations if Powell adopts a hawkish tone or if forthcoming labor or inflation data yields an unexpected increase." Powell's address will follow the release of the Federal Reserve's July meeting minutes, scheduled for later today. The latest decline in bitcoin has been characterized by profit-taking among short-term holders, or wallets with a history of owning coins for less than 155 days, as reported by CryptoQuant. The last occurrence of this phenomenon, in January, led to the bitcoin rally losing momentum near $110,000, ultimately resulting in a significant sell-off in March and early April. Another indicator of investor unease is the nearly $1 billion in total net outflows from spot bitcoin and ether ETFs on Tuesday. "At this point, the market largely anticipates rate cuts, so much of that is already factored in," said Nicolai Sondergaard, a research analyst at Nansen, in an email, referring to U.S. interest rates. "If Powell delivers exactly what's expected, crypto may experience sideways-to-slightly-bearish movement, a classic 'sell the news' scenario." Sondergaard noted that markets will likely rally if Powell indicates deeper or faster-than-expected rate cuts. Remain vigilant! Key Events to Watch Token Events Conferences The CoinDesk Policy & Regulation conference (formerly known as State of Crypto) is a one-day boutique event held in Washington on September 10, allowing general counsels, compliance officers, and regulatory executives to meet with public officials responsible for crypto legislation and regulatory oversight. Space is limited; use code CDB10 for 10% off your registration through August 31. Token Talk By Shaurya Malwa Derivatives Positioning Market Movements Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot Bitcoin ETFs Spot Ether ETFs Source: Farside Investors Chart of the Day While You Were Sleeping In the Ether