Alarm sounded! Powell's hawkish speech is imminent, Bitcoin may face a storm of sharp declines

Major news alert! On May 8, Federal Reserve Chairman Powell's hawkish speech is highly likely to stir up a storm in the cryptocurrency market, and Bitcoin may face an unprecedented significant 📉!

Currently, the market has strong expectations for Powell to "hawkish". If he releases hawkish signals, Bitcoin is likely to suffer severe damage. From the current market trend analysis, the risk of Bitcoin's decline sharply rises this Tuesday and Wednesday, and on Thursday, the day of the press conference, its drop may hit a historical low.

Despite relatively stable employment data in the U.S., reviewing the last time Powell spoke, the U.S. stock market plummeted, with a drop of up to 2%. By analogy, the situation Bitcoin faces this time is even more severe, with the market generally predicting its decline could reach $2000-$3000. The lower price range for Bitcoin is precarious, potentially dropping to $93,000-$94,000, and in extreme cases, even touching a super low point of $82,000-$86,000.

In terms of monetary policy expectations, although market expectations for interest rate cuts have strengthened, most views believe that the likelihood of the Federal Reserve cutting rates in September is much higher than in May and June. Meanwhile, the gold market is also unlikely to remain unscathed and will likely fall into a volatile pattern during this period. After all, if rate cuts proceed too quickly, it could trigger inflation issues, so one cannot simply assume that rate cuts will necessarily lead to an increase in asset prices.

Of course, within a crisis also lies opportunity. If Bitcoin's price drops to the $94,700-$95,000 range and can stabilize successfully, a rebound is likely to follow. At that time, investors can decisively enter to buy, selling once the price breaks $97,000, or even shorting in accordance with the trend, precisely capturing this volatile market and earning substantial profit from the price difference.

However, the virtual currency market is ever-changing, filled with uncertainty and risk. Investors must remain cautious, closely monitor market dynamics, reasonably control their positions, and avoid blindly following the trend.

Please note that the above analysis is based solely on current market information and trends, and does not constitute any investment advice. Investment carries risks, and decisions should be made with caution!