Powell's Speech Tonight: A Critical Moment for the Crypto Market
Tonight, all financial markets will focus on the United States—Federal Reserve Chairman Powell will deliver an important speech at the global central bank annual meeting. This speech is not only a feast for Wall Street but also a turning point that crypto investors must pay close attention to.
Why is Powell's speech so important for the crypto market?
1. Interest Rate Hike or Cut Expectations
The Fed's interest rate policy directly determines the flow of global capital. If Powell signals a "rate cut" or "shift to easing," the market's risk appetite will quickly heat up, and a large amount of capital may flow into crypto assets, with Bitcoin and Ethereum expected to usher in a new round of gains.
2. US Dollar Liquidity and Stablecoin Landscape
The strength of the US dollar and liquidity are crucial to the position of stablecoins. Once the market bets on a weaker dollar, the capital pool for stablecoins such as USDT and USDC will further expand, igniting trading activity in the crypto market.
3. Indicator for Institutional Entry
In recent months, whether it’s spot Bitcoin ETFs or Ethereum ETFs, the trend towards institutionalization is evident. If Powell releases easing signals, it will provide a policy floor for institutions to build large positions. In other words, his words could be the trigger for the next bull market.
What to watch out for?
Short-term Volatility: The volatility of BTC and ETH may increase before and after the speech, and contract players should pay special attention to position management to prevent being liquidated.
Mid-term Opportunities: If Powell leans dovish, the crypto market is likely to see a new round of increases, especially for mainstream coins and some undervalued altcoins.
Risks Still Exist: If Powell's stance is hawkish, the market may face a round of panic sell-off in the short term.
📌 Summary
Tonight's speech is a significant event that crypto investors must watch. Whether trading spot or contracts, remember one thing: the market votes with money, and every word from Powell is a signal for capital flow.
In the crypto market, the bold thrive, but before being bold, you must first find the right path. If you don’t have direction yet, find Sister Fei to guide you!
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