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Bitcoin price today: climbs above $61k after of Powell's Jackson Hole speech

Published 08/23/2024, 02:23 AM
Updated 08/23/2024, 08:59 AM
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Investing.com-- Bitcoin price gained Friday as markets reacted to the address by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium.

A broader risk-off move in financial markets weighed on crypto, while Bitcoin was also dented by fears of more token distributions by defunct exchange Mt Gox. 

Bitcoin added 2.4% climbing to $61,773.0 by 12:57 ET (17:57 GMT). 

Earlier in the day, crypto markets were somewhat spooked by a sharp appreciation in the Japanese yen, after Bank of Japan Governor Kazuo Ueda warned that interest rates could rise further.

Strength in the yen had unwound a carry trade earlier in August, battering most risk-driven markets. Bitcoin had also slumped as low as $49,000. 

Bitcoin quashed by Mt Gox caution, Powell Speech Provides Boost 

Bitcoin was set for a middling weekly performance, with the token seeing short-lived breaks above $60,000 amid persistent concerns over Mt Gox.

Wallets associated with the exchange were seen mobilizing nearly $3 billion worth of tokens this week, heralding more distributions.

The exchange had begun returning tokens stolen during a 2014 hack back to clients in early-July, with the distributions raising concerns over a mass sale event in Bitcoin, amid increased token supplies. 

A risk-off move in broader financial markets also weighed, as Wall Street indexes ended lower on Thursday. 

Markets were seen turning somewhat cautious before an address by Fed Chair Jerome Powell at the Jackson Hole Symposium on Friday. However, the comments from Fed Chair Powell, who said, "The time has come for policy to adjust," resulted in Bitcoin and other cryptos gaining on Friday. 
Traders are broadly pricing in a rate cut in September, but are split over a 25 or 50 basis point reduction, according to CME Fedwatch

The case for a deeper cut was furthered by weak labor market data released earlier in the week, although the reading also pushed up concerns that a weakening labor market will weigh on economic growth. 

Crypto price today: altcoins advance but set for middling week

Broader cryptocurrency prices rose on Friday, but were also headed for a middling weekly performance as a rebound from early-August losses ran dry. 

World no.2 token Ether rose 2.77% to $2,678.07, while altcoins SOL, ADA and MATIC climbed between 0.1% and 3.5%. XRP is up around 0.5%. 

Among memecoins, DOGE jumped 4.6%.

Value of yet-to-be-mined Bitcoin tokens is $74bn, JPMorgan says 

At current Bitcoin prices, the value of the remaining 1.3 million tokens left to be mined is estimated at about $74 billion, according to a research report by JPMorgan on Friday.

The bank has adjusted its price targets for several mining companies it covers, reflecting second-quarter earnings and recent shifts in both Bitcoin's price and the network's hashrate. The hashrate measures the total computational power used to mine and validate transactions on a proof-of-work blockchain.

JPMorgan lowered its price target for CleanSpark (NASDAQ:CLSK) shares from $12.50 to $10.50, while maintaining a Neutral rating on the stock. It also reduced the price target for Iren from $11 to $9.50, but retained an overweight rating. Marathon Digital (NASDAQ:MARA)'s price objective was cut from $14 to $12, with an underweight rating, and the target for Riot Platforms (NASDAQ:RIOT) was trimmed from $12 to $9.50, though the stock remains overweight-rated.

The report estimates the four-year block reward revenue opportunity at around $37 billion, marking a 19% decline since early June, but an 85% increase compared to the previous year.

JPMorgan favors Iren and Riot, noting that the recent underperformance of these stocks may offer a buying opportunity for investors. Riot, in particular, has lagged behind the sector year-to-date due to "operational snags," but the bank anticipates improved sentiment and potential share price gains in the coming months as uptime and production metrics improve.

Ambar Warrick contributed to this article.

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