Folks! All those late nights spent here paid off! With Powell's speech, the future of the cryptocurrency world is practically a matter of opportunity!
Let me start with a few key points, all of which are essential: First, the Federal Reserve is likely to cut interest rates by 25 basis points this month! What does this mean? There will be more money in the market, and funds that were previously held back may now flow into the cryptocurrency market. After all, everyone is looking for a way to earn a profit. Second, balance sheet reduction is coming to an end! The Fed has been tightening its monetary policy, but now it's stopping, and may even gradually loosen it. Historically, whenever balance sheet reduction stops, the cryptocurrency market has benefited. With the increase in liquidity, token prices are bound to rise. Third, employment and the economy aren't that bad. Inflation is primarily driven by tariffs, not across the board. This eliminates the risk of a sudden tightening of policy, so there's no need to panic. As for the impact on the cryptocurrency market, it can be summed up in three words: there's an opportunity, get on board, and stay calm! First, liquidity is expected to loosen. Once balance sheet reduction concludes, more money will flow into the market. This will not only benefit the stock market, but also the highly resilient cryptocurrency market, which will undoubtedly attract significant capital inflows, potentially boosting both mainstream and promising smaller coins. Second, the expectation of an interest rate cut is already there, providing reassurance to the market. Investors who were previously hesitant may now capitalize on this wave of anticipation and jump in. With more buyers, prices will naturally rise. However, we must remind everyone that Powell also stated that policy is data-driven and not 100% certain. Therefore, there may be some short-term market volatility, and some may panic buying and selling, causing token prices to fluctuate. However, we must focus on the big picture. The upward trend is now clear, and there are opportunities in both the primary and secondary markets. Finally, a frank message to all: when opportunities arise in the cryptocurrency market, don't hesitate to miss out. Those who should jump on board should jump on board, and those who should wait and see should wait and see. Let's all wait and see!