What impact did Powell's speech have on the cryptocurrency circle?
Overall market performance
General decline: From the perspective of the overall cryptocurrency market, there was a certain degree of decline after Powell's speech. The total market value of the entire crypto market also shrank, from $3.24 trillion to $3.15 trillion.
Market sentiment and long-short game
Limited pessimism: Although cryptocurrency prices have fallen, the market's pessimism has not spread excessively. The market may have digested the Fed's expectation of maintaining high interest rates, and investors have not seen large-scale panic selling. The altcoins have basically stabilized their positions, and some have even risen, which may indicate that the market bottom has been formed and investor sentiment has a certain degree of stability.
Long and short forces are stalemate: From the perspective of capital flows and positions, there is a certain game between long and short parties. Bitcoin spot ETFs have seen a net negative outflow of more than $186 million, and the uncertainty of capital flows also reflects the stalemate of long and short forces in the market.
Long-term impact expectations
Regulatory expectations are still unclear: Powell said the Fed does not intend to prevent banks from providing crypto services to legitimate customers, but also emphasized that banks must understand the risks and cannot over-develop related businesses. This shows to a certain extent that banks have a certain space to participate in crypto business, but they are also under the regulatory scrutiny of the Federal Reserve. The future cooperation and development between the crypto industry and the banking industry still faces regulatory uncertainty, which may affect the long-term development of the crypto market.
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