At ten o'clock tonight, Federal Reserve Chairman Powell will speak at the Jackson Hole annual meeting. This timing is crucial and may determine the policy direction for September.
Global markets are closely watching, and those of us in cryptocurrency should also pay attention to a few key points:
First, we need to see Powell's attitude towards interest rate hikes. If he hints that the pace of interest rate hikes will slow down, Bitcoin is likely to rise in response. If he mentions that inflation is under control, market sentiment will also improve significantly. If he talks about the risk of economic recession, some safe-haven funds may flow into cryptocurrencies.
Historically, such speeches often bring opportunities. Last August, after his speech, Bitcoin rose 10% in one day. In June this year, after he hinted at interest rate hikes, the market first dropped and then quickly rebounded, indicating that when bearish sentiments are exhausted, it can instead present opportunities. The key is that these events often breed market movements; it depends on how we respond.
In terms of specific operations, if you are a short-term trader, it is advisable to reduce positions appropriately before ten o'clock and wait for clearer direction before taking action. Friends playing contracts must remember to set their stop-losses, as volatility is high during such times, and we need to guard against liquidation. If you are holding spot positions, a significant drop might actually be an opportunity to buy in batches; for instance, if Bitcoin can drop below $25,000, it might be worth considering.
Additionally, keep an eye on related markets. If the Nasdaq index futures show significant volatility, it could likely affect the cryptocurrency market. If gold rises sharply, Bitcoin may also follow suit. If the US dollar index falls below 103, it is usually a good sign for cryptocurrencies.
Finally, a reminder: during times of high market volatility, do not impulsively chase highs or panic sell. Do not invest all your funds at once; follow your own plan.
Tonight is unlikely to be calm, so it’s best to be prepared and stay calm. If you find this useful, feel free to share it with friends. You are welcome to follow me for rational market insights.
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