The “Uber Dovish” Fed inspired the S&P 500 Index to hit a record high as analysts call it a new Bitcoin impulse move


Bitcoin (Bitcoin) After the Federal Reserve Chairman Jerome Powell delivered a “super dovish” speech, it rose by nearly $1,500 in less than an hour on August 26.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

BTC price action charges increase

At the virtual Jackson Hole annual seminar, Powell hinted that the Fed will begin to reduce asset purchases since the beginning of the coronavirus pandemic.

A sort of The long-awaited signalThe so-called “gradual reduction” initiative may be launched this year, but Powell did not give a clear start date.

“Even after the end of our asset purchases, our increased long-term securities holdings will continue to support the accommodative financial environment,” he said.

“The timing and speed of financial cuts in asset purchases will not send a direct signal to the timing of interest rate increases. For this reason, a different and substantially more stringent test has been clarified.”

The reduction in asset purchases may eliminate the stock market’s sails, so the Fed will not cause the index to fall because of Powell’s remarks. After the speech, the Standard & Poor’s 500 Index continued to hit record highs.

At the same time, the U.S. dollar weakened and Bitcoin showed clear strength, setting a local high of over $48,400 on Bitstamp.

Traders and analysts are clearly bullish.

“Put on your rally hat, futures have expired and Bitcoin is rising,” Scott Melk Summarize, And also noticed that $2 billion of open positions expired at the end of the month.

Meanwhile, popular Twitter trader Ryan Cantering Clark describe Powell’s tone is “super dovish” and advocates long positions.

Is Bitcoin just starting a new bullish wave?

With the exception of the Federal Reserve, Bitcoin’s bullish sentiment continues in the coming weeks.

related: Grayscale Bitcoin Trust FUD has now ended, because the total unlocked GBTC for the last time was only 58 BTC

On Friday, analyst William Clemente even Call start Similar to the new “bullish impulse” trend seen at the end of July.

“After some profit-taking earlier this week, we seem to have started another bullish impulse,” he said, focusing on several on-chain indicators related to Bitcoin’s “supply shock.”

“These flows will need to be monitored in the next few days, but as of now, the next 1-2 weeks tend to be bullish.”

Bitcoin supply shock indicator chart.Source: William Clement/Twitter

As Cointelegraph Report, The judgment of what will happen in the fourth quarter of this year is still firm and bullish.