Content of Powell's Speech on July 31, 2025, at 2:30 AM and Its Impact on the Cryptocurrency Market
1. Speech Content
1. This time the interest rate decision is to remain unchanged. The Federal Reserve will maintain the benchmark overnight interest rate in the range of 4.25%-4.50%. This meeting's result maintained the interest rate unchanged, marking a rare occurrence in this process. However, it has touched the cake of most people and faced opposition from many senators, with the majority believing that the current monetary 'control policy is too tight'.
2. However, a summary assessment of the economic situation indicates that the overall market is still at a low level. Employment data shows that the current market conditions remain optimistic, but economic growth is on alert, while emphasizing that 'the uncertainty regarding the economic outlook is still high'. Both inflation and employment targets face risks, and it is unclear when interest rates may be lowered in the cryptocurrency market.
2. Impact on the Cryptocurrency Market
1. Currently, expectations for tightening liquidity have increased. Powell has not released any signals for interest rate cuts, making it difficult for the market to trigger a large influx in the short term. The cryptocurrency market lacks momentum, with prices of Bitcoin (BTC), Ethereum (ETH), etc., under pressure.
2. Mobility has significantly increased. Powell's speech has greatly affected other macro indicators, making the cryptocurrency market prone to emotional fluctuations. The tug-of-war between bulls and bears has become increasingly evident, with an increase in investor activity, leading to situations where people face 'being trapped once they get in, and rebounding once they get out'.
3. Expectations for stablecoin compliance have strengthened. Powell has emphasized that the regulatory framework for stablecoins is being advanced and that 'regulatory arbitrage' must be prevented. Although this matter was not a focal point, 'stablecoins have been under the attention of regulators, with a long-term view to assist in establishing a safer trading system and clearing obstacles for institutional entry, but in the short term, the regulatory framework for stablecoins may face regulatory challenges'.
4. Market sentiment has caused short-term traders to panic due to increased uncertainty, while medium- to long-term investors see stable signals and begin to position themselves in quality coins and ecological assets. Market sentiment is difficult to unify, and the market is active.
