Powell's Speech on Friday Night Ignites the Crypto Market! Three Key Points to Grasp in Advance, Must-Watch for Retail Investors!

Federal Reserve Chairman Powell will speak at 22:00 on Friday night! This is no small matter; global financial markets need to listen closely, and our crypto market is directly affected! Let me break down what this speech is all about and how we should respond!

1. Why is Powell's Speech So Important?

The Federal Reserve is the central bank of the United States, and its every move directly affects the flow of global funds. Powell's speech tonight may reveal the direction of the Fed's monetary policy moving forward: will it continue to raise interest rates to control inflation, or will it slow down or even shift to cutting rates? This is crucial for market sentiment and fund flows!

• If dovish: For instance, hinting that rate hikes are over or that cuts may come next year, U.S. stocks and Bitcoin are likely to rise! Funds will be more willing to flow into high-risk assets, including cryptocurrencies.

• If hawkish: For instance, emphasizing that inflation is still high and not ruling out further rate hikes, the market may face short-term pressure, and Bitcoin could also experience fluctuations.

2. What is the Impact on the Crypto Market?

Bitcoin is currently highly correlated with the U.S. stock market, and Fed policy directly influences market liquidity. In simple terms:

• Loose liquidity → more money → easier to rise;

• Tight liquidity → less money → may fall.

Short-term fluctuations do not affect the long-term trend; the key is whether Powell gives clear signals. If his attitude is ambiguous, the market may continue to consolidate; if he releases a turning signal, a big market movement may be on the way!

3. How Should Retail Investors Operate?

I recommend:

• Short-term players: Keep a close eye on the market tonight; volatility may increase, set stop-loss and take-profit levels, don’t hold positions!

• Long-term players: Don’t be afraid if it drops; instead, it’s an opportunity to accumulate in batches; the bull market cycle is not over yet!

• Spot players: Hold onto your positions firmly, don’t get shaken out by volatility; the overall trend is still upward!

Finally, a reminder: Regardless of what Powell says, the market reaction may be quick, so don't blindly chase highs or sell lows! Follow me for timely interpretations of market trends! We’ll see the outcome on Friday night; let’s chat in the comments section!

My scythe is faster than the market makers! Follow me to learn how to turn the tables on the market! #加密市场回调 #鲍威尔讲话