As Powell approaches retirement, his latest statements have garnered significant attention and have even impacted the entire market to some extent.

What key messages did Powell convey?

Firstly:

Interest rate adjustments will closely follow economic data, and the pace of adjustments will significantly slow down. Secondly, the unwavering commitment to a 2% inflation target. Thirdly, a continued focus on labor market conditions, hoping for a moderate cooling rather than excessive cooling. When asked about the timing of interest rate cuts, Powell responded that only a long-term decline in inflation or a rise in the unemployment rate would be considered for rate cuts; currently, the probability of a rate cut in January is extremely low.

Regarding the concerns of cryptocurrency enthusiasts about Bitcoin as a strategic reserve, Powell did not bring any positive news, as he has always had a lukewarm attitude towards cryptocurrencies.

Overall, this meeting did not send any positive signals, with the only glimmer of hope being the mention that there is a high probability of no rate hikes in 2025.

So, where is the market trend heading?

Judging from the current trend, policies are gradually moving towards quantitative easing, although the process is slower than before. The results of the U.S. elections have not yet fully revealed their influence, but what is highly anticipated is the first month after the power transition on January 20, 2025, when the fourth quarter corporate earnings reports for 2024 will also be released, and the combination of the two is sure to create waves.

However, it's important to note that since March, the market's fervent sentiment of "missed opportunities mean losses" may gradually dissipate. At that time, truly beneficial substantial positive news for cryptocurrencies will be particularly crucial, such as the submission and approval of ETH spot ETF pledges, renewed mentions of the repeal proposal for SAB121, and the continued advancement of FIT21, all of which are tangible measures that can effectively boost the market.

Before January 20, I personally believe that if the price is right, it might be wise to strategically allocate some quality crypto assets.

December 19 Market Analysis:

The Bitcoin Policy Research Institute in the U.S. has already drafted a proposal for an executive order for President Trump, also suggesting that the country create a strategic Bitcoin reserve (SBR), and there are even ideas to incorporate it into the financial foreign exchange fund system. If this proposal can truly be implemented, then the current price of Bitcoin might just be the beginning, and subsequent prices could see greater changes and developments. $BTC