Powell's Dovish Remarks Ignite Rate Cut Sentiment!

At the Jackson Hole meeting, Powell's dovish speech instantly ignited enthusiasm in the cryptocurrency market, with Bitcoin surging 3.15% in just one hour, breaking through the $116,000 mark. Ethereum and other mainstream cryptocurrencies also followed suit, with the market displaying a strong festive atmosphere not seen in a while.

The true catalyst for this wave of market activity stems from Powell's clear indication of economic risks, which has led the market to firmly believe that the Federal Reserve will fully shift towards a rate cut policy.

Traders reacted swiftly, with futures market data showing that the probability of a 25 basis point rate cut in September soared to over 70%. A rate cut by the Federal Reserve means looser market liquidity, which directly benefits risk assets—cryptocurrencies, as leaders among risk assets, have become the primary target for capital seeking investment.

From a technical perspective, Bitcoin's ability to stabilize above $116,000 is extremely crucial. This price level was previously seen as an important resistance point, and successfully breaking through it indicates that bullish sentiment in the market continues to heat up, potentially signaling the start of a new upward trend.

Ethereum has also performed strongly, with institutional funds continuously increasing their holdings, providing solid support for the coin's price, and overall market sentiment continues to rise.

However, investors need to remain cautious and rationally face risks. Although Powell's speech released obviously favorable signals, the Federal Reserve's monetary policy still heavily relies on subsequent economic data, and fluctuations in macro indicators such as inflation levels and employment conditions could affect the policy direction. The cryptocurrency market itself is highly volatile, and even slight changes in policy direction in the short term could lead to significant price fluctuations.

From a long-term perspective, the Federal Reserve's policy shift does indeed create a favorable environment for the cryptocurrency market. A low-interest-rate era typically brings broad growth opportunities for risk assets; in a context of ample liquidity, the cryptocurrency market may continue to attract more traditional capital.

The acceptance of institutional investors is continuously increasing, with ETF products being launched successively; these factors all indicate that the prospects for the cryptocurrency market are promising.

In summary, Powell's statements have opened a new window for upward movement in the cryptocurrency market, but investors still need to closely monitor subsequent changes in policy, seizing opportunities while also implementing risk prevention measures.