The meeting of the heads of central banks inspired optimism in the crypto market

The cryptocurrency market was cautiously optimistic on Tuesday ahead of the annual meeting of globalof central banks, known as the Jackson Hole Symposium, is held at HCN.

The symposium is due to start in Wyoming thisThursday, where US Federal Reserve Chairman Jerome Powell will deliver a speech on the economic outlook and interest rate policy.

Coinbase Head of Institutional Research David Duong expects Powell to take a more balanced stance and emphasize that the tightening cycle is not over yet.

The expert believes that in the short term, Bitcoin may face difficulties as the current technical analysis picture points to increased bearish sentiment.

In the next few weeks, BTC is likely to retest support at $20,830 and $19,230,” Duong wrote.

A similar opinion was shared by analysts at Singapore-based crypto trading company QCP Capital, who said that “Fed officials are actively resisting the dovish narrative in the market.”

Other market participants, such as Mott Capital Management founder Michael Cramer, by contrast, believe that Powell will signal a rate increase, albeit at a slower pace.

He added that Powell "needs to be clear that there will be no future rate cuts until it is clear that inflation is on a downward trajectory."

Meanwhile, the US stock market has begun to feel capital inflows again after many investors left at the beginning of the summer, according to the Wall Street Journal.

The report provides financial dataResearch firm Refinitiv Lipper said investors poured $11.7 billion into mutual funds and exchange-traded funds (ETFs) over the past two weeks. Corporate earnings also came in better than expected and U.S. inflation eased from its highs, potentially lowering risk of aggressive rate increases.

Given the correlation of the crypto market with the stock market, a recovery trend is also expected in the digital asset market.