Chairman of the Fed Jerome Powell's speech at the Jackson Hole Conference on August 22, 2025, could create significant waves for financial and cryptocurrency markets.
The moment Powell speaks often guides trends in interest rates, inflation, and liquidity, thus strongly affecting stocks, bonds, and cryptocurrencies like Bitcoin or Ethereum.
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Powell's speeches have caused the market to react strongly since 2021 with differing policy messages.
The market is currently concerned about tight monetary policy, with the possibility of an interest rate cut in September at 71%.
The US economy shows signs of weakness but inflation remains below 3%, creating opportunities for the rise of Ethereum and Bitcoin.
Why does Powell's speech at Jackson Hole have a significant influence on the market?
The speech at the Jackson Hole Conference is seen as an important annual event in the field of monetary policy, often revealing important directions from the Fed. Powell, as the Chairman of the Fed, has a special influence on investor expectations regarding interest rates and liquidity.
History shows that his speeches have caused strong reactions: in 2021 leaning towards easing policy, in 2022 hinting at tightening, while 2023-2024 showed unclear signs. Therefore, investors are closely monitoring to adjust their portfolios accordingly.
This year, ahead of the speech, the market has shown concern with tightening policy expectations reflected in the movements of financial asset and cryptocurrency prices.
How can Powell's speech cause market volatility?
The speech will take place at 9 AM Vietnam time on August 22, 2025, and is expected to create significant volatility across investment channels from stocks, bonds to cryptocurrencies. Similar events in recent years have caused the market to fluctuate significantly to reflect hawkish or dovish signals.
This time, the probability of an interest rate cut in September has dropped to 71%, indicating that tight monetary policy pressure still exists. However, economic data such as the unemployment rate rising to 4.2%, increased jobless claims, and bankruptcies reaching the highest level since 2020 are creating significant pressure on the Fed to maintain or ease policy.
Thus, the speech could simultaneously trigger a sell-off wave or a strong buying momentum, depending on Powell's specific remarks.
Why could the rise of Ethereum and Bitcoin occur after the speech?
From experiences of previous years, after Powell's speeches and the market undergoes a phase of initial strong volatility, cryptocurrencies like Ethereum often record significant price increases. Investors believe that when selling pressure subsides, capital will shift towards digital assets as an attractive investment channel.
Economic data alarming with inflation below 3% could be a factor driving the Fed to ease policy in the near future, facilitating the recovery of Bitcoin and other altcoins.
"Even slight hints that monetary policy may be adjusted can easily trigger spikes in cryptocurrency markets, especially noting opportunities from a strong short squeeze."
– Cryptocurrency market analysis, Q3/2025, ABC Financial Research Company
Frequently Asked Questions
How does Powell's speech at Jackson Hole directly affect interest rates?
Powell often provides directional signals for interest rate increases or decreases through his speeches, which significantly impacts monetary policy and financial markets.
Why is the market concerned about the Fed tightening policy?
Expectations of the Fed raising interest rates lead to higher borrowing costs, putting pressure on asset prices and increasing economic risks, causing volatility in financial markets.
What opportunities are there for cryptocurrencies after Powell's speech?
When the Fed shows signs of easing policy or expectations for interest rate cuts increase, cryptocurrencies like Ethereum and Bitcoin often recover and rise sharply.
What impact does the unemployment rate have on current monetary policy?
Rising unemployment is a negative sign for the economy, which may lead the Fed to maintain or cut interest rates to support growth.
Why does the ETH rally often occur after Powell's speeches?
ETH often benefits from cash flows shifting into cryptocurrency and trading opportunities as market volatility subsides.
Source: https://tintucbitcoin.com/tin-tuc-bitcoin-va-crypto-2024/
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