Powell's speech in the early morning caused the cryptocurrency market to collapse instantly! Reasons Revealed

At 3 a.m. today, Federal Reserve Chairman Powell's speech triggered significant fluctuations in global financial markets, especially the sharp decline in the cryptocurrency market, leading to a dramatic drop in the prices of Bitcoin and other cryptocurrencies 📉💥.

Key Points of Powell's Speech

He emphasized that the Federal Reserve is confident in achieving its goal of returning inflation to 2% in the future, despite facing uncertainties, and that the tightening monetary policy is showing initial results 💪. At the same time, the labor market is cooling 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 sharp decline, especially Bitcoin, which even caused some trading platforms to suspend withdrawals and crash ⚠️.

Market Reasons😱

This crash was influenced not only by the Federal Reserve's policy signals but also by structural issues in the market, excessive leverage in cryptocurrencies, and investigations by the SEC into cryptocurrency platforms 🔍💣. These factors collectively intensified market panic 😱.

Future Outlook🌐

Despite facing uncertainties and regulatory pressures, the potential of cryptocurrencies 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 🤔💡.