Crypto, Stocks Edge Higher as Jackson Hole Inches Closer

Both crypto and equities markets have taken a breather as investors wait cautiously for central bankers to gather at Jackson Hole.


Federal Reserve Chair Jerome Powell | Source:Federal Reserve (CC license)


key takeaways

  • Markets have found reprieve from their recent tumbles ahead of Jerome Powell’s speech on Friday
  • The market is spilt on what the outcome of September’s Federal Open Market Committee may be

The recent slide in markets saw some relief Wednesday, as both stock and crypto traders speculate about what central bankers may come away with after this week’s Jackson Hole symposium. 

Equities managed to stay in the green during Wednesday’s trading session, with the S&P 500 ticking as much as 0.8% higher and the Nasdaq gaining 1%. After three days of declines, it was a welcome, albeit minor, reprieve.

Leading crypto assets bitcoin and ether also edged higher, respectively gaining 1.2% and 0.8% as of 2 pm, ET, with Fed Chair Jerome Powell due to present at Jackson Hole in two days.

“We are at an inflection point for the mega-cap trade as hedge funds position themselves for further weakness in bonds and a much weaker consumer as the economy slows,” Edward Moya, senior market analyst at Oanda, said. 

“Today’s rebound is small and on light volume, which means most traders are playing the waiting game until Fed Chair Powell’s Jackson Hole symposium speech.”

The Economic Policy Symposium, hosted by the Kansas City Federal Reserve, will kick off Thursday. Powell is slated to speak Friday, and markets might be caught off guard, analysts say.

“Fed Funds Futures and Treasuries say [Powell’s] Jackson Hole speech will lean hawkish, with a commitment to several more rate hikes and no discernible hint of a ‘pivot’ in the first half of 2023,” Nicholas Colas, co-founder of DataTrek Research said.

“With the VIX at 24, US stocks may not yet have fully embraced this eventuality.”

Futures markets are showing a 58.5% chance of a 75 basis point rate hike at the next policy meeting in September, according to data from CME Group. There is a 41.5% chance of a 50 basis point increase.

Even as markets are fairly evenly split between 50 and 75 basis points, economists are not expecting rising rates to stop in September. 

Dan Morehead, CEO and chief investment officer at Pantera Capital, sees Fed Funds rates hitting at least 4% or 5% before the central bank switches strategy. 

“You can’t tame runaway inflation with Fed Funds 600 basis points lower than inflation,” Morehead wrote in a note Wednesday. “The Fed will be forced to tighten much more than the markets currently forecast.”

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Do Kwon may miss the start of the March 25 trial in the SEC’s case against the former executive and Terraform Labs


Riot Platforms bought 31,500 more mining machines while CleanSpark has begun operating in Mississippi


Dencun was activated on all testnets, a blog post Tuesday said


Hut 8 also announced it broke ground on a Texas mining site


Uniswap aims to become a “complete platform for swapping” following its latest product releases


Continued demand for bitcoin ETFs coupled with greater demand for bitcoin from exchanges is contributing to price moves, analysts say