Crypto Markets Brace For Warsh's Jackson Hole Speech

Sentiment in cryptocurrency market remains cautious amidst anticipation ahead of the speech by Fed Chair Kevin Warsh at the Jackson Hole economic symposium. The speech comes in the backdrop of sticky PCE-based inflation and a spike in longer tenor bond yields attributed to worries about the fiscal situation and the large public debt.

The speech assumes significance as the recent buyback announcement by the U.S. Treasury helped ease longer tenor bond yields and propelled Bitcoin to a higher orbit. Crypto watchers would be keen to know whether the Fed Chair's speech would contain hints about yield curve control and whether the Fed would work in tandem with the Treasury or stay away, stressing the Fed's independence.

Bitcoin touched a high of $81,347 during the past 24 hours. Overall cryptocurrency market capitalization has slipped mildly from the flatline.

The price movement in crypto market comes amidst the dollar's strength which is despite a decline in both the crude oil price benchmarks by more than 1 percent. Sovereign bond yields have hardened across regions. Like Bitcoin, gold is also trading slightly below the flatline.

The CMC Crypto Fear and Greed Index that tracks sentiment in the crypto market has dropped to 81 (Extreme Greed) from the yearly high of 82 (Extreme Greed) recorded a day earlier. The index was at 74 (Greed) a week ago and 35 (Fear) a month earlier.