Tonight at 22:00 Powell's 'Decision'! The cryptocurrency market must focus on 3 major highlights, along with operational key points
Tonight at 22:00 (Beijing time), Powell will deliver a speech at the Jackson Hole annual meeting. This is not only a key turning point for determining the direction of the Federal Reserve's policy in September but may also directly shake global markets, and cryptocurrency investors must be fully alert!
1. The 3 major core highlights of Powell's speech
• Interest rate expectations: If he clearly hints at slowing down rate hikes or even signals a pause, mainstream cryptocurrencies like Bitcoin are likely to experience a short-term boost;
• Inflation statement: If he mentions 'inflation is controllable' or 'pressure is easing', market risk appetite will quickly rebound, leading to a warming of market sentiment;
• Economic outlook: If he mentions the risk of economic recession, some risk-averse funds may shift to cryptocurrencies, providing short-term support for the market.
2. Historical data: Every speech is an 'opportunity window'
• After last August's speech, Bitcoin surged 10% in a single day, with mainstream cryptocurrencies following suit;
• After the June speech this year hinted at interest rate hikes, the market initially fell and then rose, ultimately rebounding as 'bad news was fully priced in';
• Key conclusion: Speeches often trigger short-term volatility in the cryptocurrency market, where risks conceal graspable opportunities.
3. Tonight's trading operation guide
• Short-term players: It is recommended to reduce positions before 22:00 and wait for clear direction after the speech before taking action to avoid blind predictions;
• Contract players: Be sure to set stop-loss limits in advance and be wary of 'spike' market conditions to prevent extreme volatility from causing liquidation;
• Spot players: If there is an unexpected sharp drop (for example, Bitcoin falls below 25,000), it can be seen as a short-term buying opportunity, but position control is necessary, and full exposure is not recommended.
4. Keep a close eye on related market indicators
• U.S. stocks: Movements in Nasdaq futures can serve as leading signals, and their fluctuations are likely to drive cryptocurrency market sentiment;
• Gold: If gold surges sharply in the short term, reflecting a rise in risk-averse sentiment, Bitcoin may also show correlated movements;
• U.S. Dollar Index: If it falls below the key support level of 103, a weaker dollar will provide upward momentum for cryptocurrencies.
Last 3 key reminders
1. Refuse FOMO emotions, do not chase prices or sell low, and do not let short-term fluctuations disturb your rhythm;
2. Absolutely do not 'All in' at once; always leave enough room for error in your positions;
3. Strictly execute the preset trading plan and do not change strategies temporarily.
