Emergency interpretation! Federal Reserve Chairman Powell's speech at the Jackson Hole annual meeting has pushed this week's non-farm data into a 'life or death situation'!
Analysts at Deutsche Bank clearly pointed out: The importance of this labor data far exceeds previous ones; if it falls short of expectations, the market will bet wildly on an interest rate cut by the Federal Reserve, and there may even be a violent cut of 50 basis points in one go!
What does this mean? It means a nuclear-level benefit for the cryptocurrency market!
Soaring interest rate cut expectations = Dollar index plummeting = Bitcoin and cryptocurrencies ushering in a super flood!
Historical experience tells us that once the interest rate cut cycle begins, a large amount of cheap money will flood into the crypto market, driving mainstream coins like BTC and ETH into a bull market frenzy!
If tomorrow's ADP data (expected 80,000) is lower than expected, it will become the first clear signal to be bearish on the dollar and bullish on Bitcoin!
Although ADP is not very predictive for non-farm data, it will greatly affect market sentiment and expectation management. Friday's non-farm data is the key moment that will truly ignite the market!
Exclusive analysis from Lan Xuan:
Short term: Weak data → Rising interest rate cut expectations → Dollar weakness → Bitcoin breaks previous highs;
Medium term: If the Federal Reserve really starts a significant interest rate cut, Bitcoin is very likely to replicate the trend seen after March 2020, initiating an epic rise;
In terms of operations: Focus on macro-sensitive assets like BTC and ETH, reasonably allocate leverage, and avoid the risk of sharp fluctuations in small coins!
The current market has entered a 'data-sensitive period', where any slight movement could trigger significant volatility. Investors must pay attention to tomorrow evening's ADP data and Friday's non-farm report, as these two data points will determine the direction of the September market!
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