From last night to this morning, the cryptocurrency market was completely boiling! Federal Reserve Chairman Powell ignited the market with 'dovish' signals at the Jackson Hole annual meeting—cryptocurrencies surged collectively, with Ethereum skyrocketing to $4,888.48, strongly breaking through the historical high set in November 2021!
The group is filled with screenshots of profit-sharing; some shout 'The bull market is really here,' while others regret 'I didn't dare to increase my position yesterday.' However, behind the excitement lies the chilling reality of brutal data: Coinglass's latest statistics show that over 160,000 people were liquidated in the cryptocurrency market in the past 24 hours, with a total amount reaching $694 million!
1. Powell's 'Dovish' Remarks Ignite ETH to Break Historical Ceiling
Who would have thought that just a few days ago, the market was being 'stabbed' by the Federal Reserve, only to make a 180-degree turnaround because of Powell's speech? He clearly released 'dovish' signals at the annual meeting, did not mention the previous 'interest rate hike risks,' and instead hinted that subsequent policies would lean more towards stabilizing the market—once this statement was made, funds rushed into the cryptocurrency market like crazy.
Bitcoin took the lead and broke through $45,000, followed closely by Ethereum, which surged from $4,200 straight to touch $4,888.48 at dawn! It's worth noting that this price is higher than the peak of the bull market in November 2021, and many veteran players exclaimed 'It's been a long time since I've seen this,' with their held ETH instantly recovering or even doubling.
But don't just celebrate the rise; the liquidation data is the 'other side of the mirror' for the market: among the $694 million in liquidations, many were previously bearish investors who thought the Federal Reserve would continue to 'douse cold water,' only to be caught off guard by Powell's 'dovish' speech. Some newcomers chased the highs too eagerly, did not set stop-losses, and were forcibly liquidated with a slight pullback, returning to square one overnight.
2. The risks hidden behind new highs: how long can this surge last?
ETH breaking historical highs is indeed exciting, but veteran players understand: the crazier the market, the calmer one should be. Think back to a few days ago when the Federal Reserve hinted that 'interest rate cuts are not that easy.' After ETH surged, it quickly pulled back. How many people got trapped chasing the highs? Now Powell's 'dovish' remarks are boosting the rise, but whether this trend can continue remains a question.
On one hand, the Federal Reserve's attitude is never set in stone. This 'dovish' stance may be a short-term measure to stabilize the market, and if inflation data exceeds expectations (the core PCE data comes out next Friday), they might change course; on the other hand, market sentiment is currently extremely polarized, with 160,000 liquidations already indicating a significant divide between bulls and bears. Once there is any disturbance, funds may retreat at any time, leading to another wave of volatility.
Just like the previous bull market in 2021, ETH also broke new highs, but the Federal Reserve later announced tapering, which directly crashed the market. Now, although Powell has 'dropped doves,' he hasn't said that the easing will continue. This wave of increase seems more 'emotion-driven' rather than 'fundamentally supported'—friends chasing highs must remember to set stop-losses to avoid turning 'paper profits' into 'real losses.'
An urgent reminder for cryptocurrency players
If you have profits in hand, don't be greedy! You can reduce some positions first, lock in profits, and set proper stop-loss and take-profit levels for the remaining holdings. Even if there's a pullback, you won't lose too much.
For those who haven't entered the market yet, don't blindly chase the highs! ETH has already reached historical highs; entering now poses far greater risks than opportunities. It's better to wait for a pullback to stabilize before considering.
Pay attention to next Friday's core PCE data! This is the inflation indicator that the Federal Reserve values most; if the data exceeds expectations, it may reverse the current 'dovish' atmosphere, and the cryptocurrency market is likely to be affected.
Tonight, I will continue to monitor the market while also paying attention to subsequent statements from Federal Reserve officials. Any risks or opportunities will be immediately shared in the fan group. Making money in the cryptocurrency market relies not on 'gambling,' but on the judgment of information and risks—if you want to keep up with the rhythm and avoid pitfalls, following me is definitely a good choice!
