Cryptocurrency Turmoil: Bitcoin Soars and Then Retreats, Fed Dominates the Scene

As Powell's words of "possible rate cuts in September" just echoed, the crypto market immediately rejoiced—Bitcoin surged by $1500 to $116,000, Ethereum reached $4900, and even meme coins followed the trend. However, the “Fed spokesperson” quickly dampened the enthusiasm, stating “don’t expect rates to continuously drop,” leading to a sharp turn in the market, with Ethereum falling directly to $4720. This tactic closely resembles the Fed's strategy in 2021, where they first lured investors before pulling the rug out.

Comparing Powell's speeches over the past two years is even more painful: last year, the signal for easing was clear, and Bitcoin and Ethereum skyrocketed; this year, he only mentioned “possible adjustments,” without specifying how much or for how long the cuts would last. The market is stuck in a sideways trend around Ethereum at 4700, filled with confusion. Additionally, three major figures within the Fed oppose rate cuts, and next Friday's core PCE data (expected at 2.9%) is becoming a critical point, making it unlikely for rate cuts to become the “norm.”

Here are three tips for everyone: Those chasing highs should quickly set stop-losses; Ethereum at 4680 and Bitcoin at 115,000 are key support levels; if you haven’t entered the market, don’t randomly bottom fish; wait for the PCE data to be released or for Ethereum to stabilize below 4500 with a decrease in volume; don’t just fixate on the K-line, as the Fed's direction ultimately determines whether Ethereum can reach 5000. #ETH创历史新高 #美联储降息预期 $BTC $ETH