🔥🔥🔥Analysis of the Potential Impact of Powell's Speech on the Cryptocurrency Market!!!
Tonight, Federal Reserve Chairman Powell will deliver a speech at the Jackson Hole annual meeting, and this event has multiple potential impacts on the cryptocurrency market.
From a macroeconomic perspective, if Powell hints that the Federal Reserve may lower interest rates, expectations for market liquidity will increase, prompting investors to seek higher-return assets. Cryptocurrencies like Bitcoin, which have certain anti-inflation properties and high return potential, may attract more capital inflows, driving up coin prices. Particularly, mainstream cryptocurrencies that are highly correlated with the macroeconomy, such as Bitcoin and Ethereum, may experience significant price fluctuations.
If Powell releases hawkish signals, emphasizing the maintenance of current monetary policy or expectations of interest rate hikes, it will lead to a return of market funds to traditional financial markets, increasing pressure for capital outflows from the cryptocurrency market, and cryptocurrency prices are likely to come under pressure and decline. At the same time, market panic may spread, and smaller altcoins may experience even larger declines, with the overall market valuation facing adjustments.
Additionally, Powell's comments on the assessment of the Federal Reserve's policy framework will affect market expectations for future economic prospects, thereby influencing investors' risk appetite in the cryptocurrency market, triggering sharp short-term market fluctuations.
