Powell's speech in the early morning caused an instant collapse in the cryptocurrency market!
Summary of reasons:
Impact of Powell's speech: Emphasized the Federal Reserve's confidence in the inflation target, stated that tightening policies are effective, and mentioned changes in the labor market and the timing of policy adjustments. The stock market is positive, but the cryptocurrency market is impacted.
Issues within the cryptocurrency market: The crash of LUNA and other coins, excessive collateralized lending in DeFi, high-leverage investments, and the misappropriation of funds leading to liquidity crises and a death spiral in liquidations, intensifying panic.
Regulatory factors: The U.S. SEC's investigation into Coinbase's trading situation undermines market confidence.
Overall characteristics: The cryptocurrency market itself has high volatility, and regulatory policies are uncertain, with varied attitudes from different countries, increasing instability.
Despite facing numerous challenges, the application prospects of blockchain technology are broad, and more use cases are expected to emerge in the future.
