Tonight, Federal Reserve Chairman Powell's semi-annual monetary policy report testimony could have multifaceted impacts on cryptocurrencies:

Interest Rate Related Impacts

- Changes in Investment Attractiveness: If Powell signals interest rate cuts, it will lower the yield of USD assets, and investors may seek higher-yield alternative assets such as cryptocurrencies, increasing investment interest in cryptocurrencies and driving up their prices; if he hints at raising interest rates or maintaining high interest rates, the investment attractiveness of cryptocurrencies may decline.

- Changes in Market Liquidity: Interest rate cuts will increase global market liquidity, and some funds may flow into the cryptocurrency market, increasing trading activity, liquidity, and trading volume, but may also exacerbate market volatility; while raising interest rates or maintaining high interest rates will lead to tight market funds, and funds in the cryptocurrency market may also be withdrawn.

Regulatory Attitude Impact

If Powell emphasizes strengthening the regulation of cryptocurrencies, it may cause the market to worry about the prospects of cryptocurrencies, leading to price declines and decreased trading activity; if he expresses a relatively open attitude towards cryptocurrency innovation, or mentions supporting the healthy development of the cryptocurrency market under effective supervision, it may enhance market confidence and have a certain stabilizing and boosting effect on cryptocurrency prices.

Economic Outlook Expectation Impact

If Powell expresses concern about the economic outlook and there are downside risks to the economy, the attributes of cryptocurrency as 'digital gold' or a safe-haven asset may be strengthened, and investors will increase their allocation to hedge potential risks; if he is optimistic about the economic outlook, investors may be more inclined to traditional financial assets and reduce their attention to cryptocurrencies. #加密市场反弹 #以色列伊朗冲突 #鲍威尔半年度货币政策证词 $BTC