Last night, Fed Chair Powell spoke at the annual economic symposium in Jackson Hole, and his remarks impacted global financial markets, triggering a series of chain reactions.
Powell pointed out that the U.S. economy is resilient in a complex backdrop, but the labor market and economic growth have slowed. There are upward risks to inflation, and given the tightening policies and economic changes, the Fed may cut rates in the coming months. At the same time, the Fed revised its statement, removing the 'average inflation targeting' and returning to a flexible inflation target.
After the speech, traders increased their bets on a Fed rate cut in September. CME's 'FedWatch' shows that the probability of a 25 basis point rate cut in September has risen to 91.1%. European and American stock indices collectively closed higher, with all three major U.S. indices rising over 1.5%, and the Dow hitting a record high. Large tech stocks and popular Chinese concept stocks rose broadly, with the Nasdaq Golden Dragon China Index closing up 2.73%.
The cryptocurrency market also saw significant volatility, with Ethereum at one point rising over 5%, with a single-day increase reaching nearly 15%, breaking its historical high, and accumulating over 250% since the low point in April 9, with a total market cap of approximately $590 billion, and mainstream cryptocurrencies like Bitcoin following suit.
For cryptocurrency investors, Powell's speech has multiple effects. If the Fed cuts rates in the coming months, market liquidity will increase, traditional investment channels may see lower returns, and the cryptocurrency market may attract some funds. Taking Ethereum and Solana as examples, the development of blockchain technology and the expansion of application scenarios enhance their intrinsic value, and the expectations of loose monetary policies triggered by Powell's speech provide external momentum for price increases.
In addition to the ETH/SOL/ADA/AAVE/ANER that Ah Li previously suggested, there are other projects in the same sector worth paying attention to:
LDO: The largest liquid staking protocol for Ethereum. Current TVL is nearly $41 billion, accounting for 26% of the total DeFi TVL. An increasing number of applications accept its staked stETH as collateral or payment means, and Ethereum staking continues to heat up, with a robust outlook.
UNI: DEX leader. The V4 version has been launched, allowing developers to use Hooks to create customized pools and strategies, with over 2,500 Hook pools already deployed. The dedicated layer-2 network Unichain has gone live, accounting for more than 70% of daily active trading, expanding the user base and risk resistance.
RAY: The native token of Raydium, which provides liquidity support for decentralized exchanges in the Solana ecosystem using the AMM model. RAY is used for paying transaction fees, participating in governance, and rewarding liquidity providers.
For those holding chips, Ah Li still insists: you must hold on tightly; the market outlook is absolutely promising!!!
Of course, congratulations to the new friends who got on board; Ah Li indicated to get on at 21:49 last night, and by 22:00 the market surged rapidly, yielding at least 500 points in profit for those who held on!!!
