《Market Plunges, Powell Says Federal Reserve Has No Intention to Hold Bitcoin》

📉 Total cryptocurrency market capitalization falls below $3.52 trillion

Among them, BTC market capitalization accounts for 56.44%, and ETH accounts for 12.62%.

📈 The Dollar Index DXY breaks previous highs, reaching a new high since November 2022, currently reported at 108.12.

🗞️ Powell: Further rate cuts require more inflation progress support

The Federal Reserve has cut the benchmark interest rate for the third consecutive time, but is being more cautious about future rate cut steps. Powell pointed out at the press conference: “Through today’s action, we have reduced the policy rate by a full percentage point from its peak, significantly reducing the restrictiveness of current policy.”

Powell: Rate hikes unlikely next year

Federal Reserve Chairman Powell clearly stated at the news conference that the likelihood of rate hikes next year is very low. Powell noted that the Federal Reserve's current goal is to bring the inflation rate down to 2% while maintaining a strong labor market. The current interest rate level of 4.3% is considered to be “adequately calibrated restrictive range,” which has had a significant suppressive effect on economic activity.

🤔 When asked if there is a possibility of resuming rate hikes amid a slowdown in rate cuts, Powell stated: “While we cannot completely rule out any possibility, this scenario seems unlikely.”

However, Powell added that interest rates still have a tangible suppressive effect on economic activity. He emphasized that before further rate cuts, more progress in inflation data must be seen.

Achieving the inflation target may take one to two years

Powell stated that although he is confident in returning inflation to the 2% target, this process may still take one to two years. He pointed out that current inflation data reflects a gradual easing of the recent shocks to the economy, but there is still significant uncertainty in the economic outlook for the next three years. At the same time, geopolitical turmoil remains one of the major risks.

👨🏻‍💻 BTC current price falls below $100,000, with a weakening trend in the short term. The 4-hour chart shows that the MA30 moving average has been lost, currently seeking support near the MA120 moving average. Meanwhile, the daily MA30 key support level is at $98,500, and attention should be focused on whether this level can provide effective support. If it is lost, the market may face further downward pressure; if it holds, there is hope to retest the key resistance range above $101,000.

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