Fed Policy Shift After Jackson Hole Spurz Crypto Rally, Talk UBS
UBS eye dem say di Fed Chair Jerome Powell Jackson Hole talk na clear policy shift. Powell put eye for labor market risks plus inflation, show say im dey go soft. Im talk say policy dey "restrictive territory" and warn say dem fit change if employment or inflation outlook change. Market come boost crypto price, as investors begin dey price possible rate cuts. UBS highlight three main things: new focus for employment risks, danger of quick job loss, and tight watch on inflation expectations. Traders suppose watch incoming jobs and inflation numbers. If dem turn to softer monetary policy, e fit keep crypto gains for short and long term.
Bullish
Powell speech dey yan say Fed don turn soft by dey add employment risk inside dia policy framework. Mention say dem fit still adjust restrictive policy don make market believe say dem go cut rates later. For history, when Fed dey ease and people dey expect rate cuts, e dey boost liquidity plus demand for risky assets like cryptocurrency. For example, after di 2020 Powell-led easing, Bitcoin and altcoins rally as yields fall. Short term, traders fit buy when price drop before key jobs and inflation data drop. Long term, if low rates continue, e fit keep crypto market bullish by lowering opportunity costs and increasing speculative inflows.