When the Fed Chair Speaks... Markets Shake!
Statements by Jerome Powell, the Chair of the U.S. Federal Reserve, are not just words; they are strong indicators that guide the course of the global economy and, in particular, the cryptocurrency market. Every time Powell makes remarks about inflation, interest rates, or economic growth, the market translates these signals into massive buy or sell decisions.
📊 For example, if Powell indicates that inflation remains high, this could mean an interest rate hike is coming soon, putting pressure on risky assets like cryptocurrencies. Conversely, if he discusses an economic slowdown, investors might expect a rate cut, pushing Bitcoin and altcoins upward.
✅ Strong Tips for Investors:
1. Follow Powell's statements directly from official sources like the Federal Reserve's website or its press accounts.
2. Don't rush to make trading decisions upon the release of statements; wait for the initial market movement and then assess the true direction.
3. Combining fundamental analysis with technical analysis is very important when dealing with these events.
4. Always be prepared with a risk management plan, especially on major news days.