Cryptocurrencies

Jackson Hole Lecture – The Future of Gold and Bitcoin (BTC) is decided today – Cryptocurrencies

We will have to watch the Jackson Hole conference like milk on fire this week in order to anticipate the trend in BTC / USD. The world banking gratin will meet Thursday and Friday at this conference organized by the Kansas City FED. On the menu: “Navigating the coming decade: What implications for monetary policy”. The highlight will be the speech by Jerome Powell, President of the FED.


Jackson Hole

The helmsman of the FED will speak this Thursday at 3.10 p.m.. Other central bankers will speak, including Bailey of the bank of england, Lane of the BCE and Macklem from the Central Bank of Canada. Note also that Donald trump will also speak at the republican convention, which could also shake up the markets. But it’s Powell who will have the biggest impact on pairs EUR / USD and BTC / USD. You can follow the speech in streaming on the FED website here.

What is Powell gonna talk about? Most likely what we were telling you about in mid-August, which is let go of inflation… Indeed, we reported on August 16:

Lael Brainard (Fed Governor) is in favor of letting inflation go above 2% when it has hovered significantly below 2% in the past. A view shared by … Vitor Constancio, the former vice-president of the ECB.

jackson Hole an event in favor of gold
This analyst expects Jackson Hole conference to have a strong bullish impact on gold

Inflation

This statement is undoubtedly a teasing of what is in the “Monetary Policy Framework Review”, a “study” conducted by the FED since november 2018 whose goal is to redefine a new monetary paradigm.

You don’t have to have a doctorate in econometrics to understand that the American Central Bank is looking for a way to erase the gigantic debt of the United States. The solution found being inflation, if Lael Brainard has sold us the wick …

Suppose the prices double … This means that the state revenue from the VAT (fixed rate on everything sold) also double! Convenient for paying off debt.

All those who are invested in government debt (# assurance_vie …) then see the purchasing power of their savings collapsing. Strictly speaking, we will not take their money, but inflation will take care of impoverishing them … Inflation has the power to reduce debt.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Plan B..

You have to understand that Jerome Powell is going to pose the milestones of the next decade. Any statement suggesting that the Fed will flex its mandate to allow inflation to gallop above 2% will be very bullish for the cryptocurrency. Gold has a good chance of returning to the top as soon as 2000 $ before the markets close, taking in its wake the other safe havens of money and BTC.

Letting inflation go has always been central bankers’ plan B and it is precisely for this reason that China stopped buying US debt after the 2008 crisis. The Middle Kingdom understood straight away that it would be refunded in monkey money once the Fed’s printing press got under way. The famous “Quantitative Easing”. Hence his frantic purchases of gold …

Be as smart as the Chinese who currently swallow more half of bitcoins thanks to gigantic mining farms …

Economic calendar and graphical analysis

We will also have to keep an eye on the US GDP Thursday at 2:30 p.m. Consensus is counting on a 32% decline in GDP… A lower figure should weigh on the dollar. The unemployment compensation claims US could also shake the greenback (1 million expected).

From a chart perspective, BTC / USD remains below the resistance at $ 12,500. The underlying trend remains bullish and we still keep our sights on the $ 14,000, last resistance before a possible breakout towards historic highs.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

BTC / USD weekly chart:

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