Powell's speech at dawn caused the crypto market to crash instantly! Reasons revealed

At 3 a.m. today, Federal Reserve Chairman Powell's speech triggered a significant upheaval in the global financial markets, especially a sharp decline in the crypto market, leading to a drastic drop in the prices of cryptocurrencies like Bitcoin 📉💥.

Key points from Powell's speech

He emphasized that the Federal Reserve is confident in returning inflation to a target of 2% in the future, despite facing uncertainties, and that the tightening monetary policy has already shown initial results 💪. Meanwhile, the labor market has cooled from an overheated state, with the unemployment rate rising to 4.3% 📊. Powell also stated that future interest rate cuts will be adjusted based on economic data and outlook 📅.

Market reaction📅

Powell's speech led to a general rise in the stock market 📈, but the cryptocurrency market experienced a significant drop, especially Bitcoin, which even caused some trading platforms to suspend withdrawals and crash ⚠️.

Market reasons😱

This crash, in addition to the Federal Reserve's policy signals, was also influenced by structural issues in the market, excessive leverage in cryptocurrencies, and the SEC's investigation into crypto platforms, among other factors 🔍💣. These factors collectively intensified market panic 😱.

Future outlook🌐

Although cryptocurrencies face uncertainties and regulatory pressures, their potential remains enormous 🚀. The application prospects of blockchain technology in various fields are worth looking forward to 🌐. Investors need to remain rational and adapt to market fluctuations and uncertainties 🤔💡.