Powell's Farewell Speech: Could Jackson Hole Trigger a Market Liquidation?
Global traders are holding their breath as Federal Reserve Chairman Powell delivers his final speech at Jackson Hole, promising key signals regarding the path of interest rate cuts, inflation trends, and the policy framework. The ripples of these signals are bound to reverberate across the cryptocurrency market.
Current market anxiety has reached a critical point: persistent inflation, weak employment data, and surging political pressure all weigh on the market. With these multiple variables intertwined, Powell's statement will become a turning point in market sentiment. For the crypto market, the tone of the Fed chief's words could directly reshape the short-term trajectory of risky assets like Bitcoin and Ethereum.
Market expectations for a September rate cut are divided: If Powell signals a dovish tone, suggesting the opening of an easing window, risk appetite is likely to rebound, potentially leading to a rebound in cryptocurrencies alongside the stock market. However, if he maintains a radical anti-inflation stance or remains vague about policy direction, market volatility could surge, triggering a wave of short-term liquidations.
It is worth noting that this speech may hold hidden legacy implications. Amid growing pressure for political interference, how Powell maintains the Fed's independence and whether he addresses long-term adjustments to the policy framework will influence the market's medium- to long-term outlook on US dollar liquidity, a key variable in determining the bull and bear cycles of cryptocurrencies.
Crypto investors are currently entering a period of quiet observation. If Powell clearly signals easing expectations, risk capital may accelerate its return to digital assets. If uncertainty continues to simmer, the current low volatility pattern may be broken, leading to significant fluctuations.
This farewell speech not only sets the tone for Fed policy but also serves as a "stress test" for the crypto market. Every word counts, weighing heavily in determining the outcome of the bull-bear game.
