【Powell's Speech Ignites the Market, Short-term Bullish but Cautious About chasing Highs】
Powell released dovish signals at the Jackson Hole meeting, suggesting a possible interest rate cut in September, boosting expectations for market liquidity, triggering a weaker dollar and capital flow into high-risk assets (including cryptocurrencies). Historical experience shows that such speeches often become turning points in the market, combined with inflows into cryptocurrency ETFs and leverage liquidation effects, leading to a sharp price increase in the short term.
Future Trends
Short-term Bullish: The expectation of rate cuts combined with capital inflows leads to a bullish market sentiment, which may continue the rebound.
Mid-term Cautious: If the rate cuts do not meet expectations or inflation fluctuates, there may be a retracement of gains. It is important to pay attention to the September FOMC meeting trends and economic data.
Operational Suggestions: Go with the flow but avoid chasing highs, focus on tracking macro data and the pace of Federal Reserve policy.
