When the Crypto Bear or Bull period will begin, analyzing the facts

August 26 is the long-awaited day for a critical change in the price movements of the crypto market. At the end of the day, the bears or the bulls will take over the market, although everyone is hoping for a reversal of the downtrend.

Recall that the latest announcement of inflation data did not push the market down. Instead, investors saw price increases. But from this week’s price movement, it is evident that the recovery has calmed down.

But another movement could take place after the annual meeting of the Federal Reserve.

The annual meeting of the Federal Reserve

Every year, the Federal Reserve convenes a meeting with many economists. The host of this meeting is usually Jackson Hole, where the central bank sets its annual economic program.

MoM data on personal consumer spending in the United States will be revealed at today’s meeting. This information is another critical inflation data that will reveal the nature of the crisis. Additionally, this data will show whether people are spending more or less now, indicating a healthy or unhealthy economy.

Apart from the MoM announcement of personal consumption spending, the crypto market is also worried about the Federal Reserve’s plan to fight inflation. Interested investors can watch Jerome Powel’s speech on the Kansas City Federal YouTube Channel.

Why Should Crypto Investors Worry?

Recall that Neel Kashkari, CEO and Chairman of the Minneapolis Fed, made some comments a day ago indicating his expectations for the Volcker-esque approach. According to the story, Paul Volcker was the Chairman of the Federal Reserve in 1927. During runaway inflation in the United States, Volcker created two short but massive recessions to forcefully stop spending and reduce inflation.

By making such suggestions, Kashkari believes the Federal Reserve should create recessions to stop inflation. Being one of the more dovish Fed officials, his statements have many people in the crypto industry worried. That’s because others, like James Bullard, the president of St. Louis, were even the ones who took the toughest stance earlier.

So the scales could be tilted one way or the other at today’s meeting. If current Federal Reserve Chairman Jerome Powell now agrees with the others, the crypto market will turn more bearish. But if he decides to resolve inflation peacefully, the crypto market will move higher.

From the above expectations, it is evident that the Federal Reserve has the power to create a recession. Therefore, the outcome of the meeting now hinges on whether Jerome Powell decides to fight inflation, dovish or hawkish.

Featured image from Pexels, charts from TradingView.com