At the brink of retirement, Powell's latest statements have drawn significant attention, even impacting the entire market to some extent.

What key messages did Powell convey?

Firstly:

Interest rate adjustments will closely depend on 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 to maintain a moderate calm and avoid excessive cooling. When asked about the timing of interest rate cuts, Powell responded that only a long-term drop in inflation or an increase in the unemployment rate would bring rate cuts into consideration. Currently, the probability of a rate cut in January is extremely low.

Regarding the cryptocurrency community's concerns about Bitcoin as a strategic reserve, Powell did not bring any positive news, as he has always been indifferent towards cryptocurrencies.

Overall, this meeting did not release positive signals; the only glimmer of hope was mentioning that there is a high probability of no interest rate hikes in 2025.

So, where is the market trend heading?

Based on the current trend, policies are gradually evolving towards quantitative easing, but the process is slower than before. The results of the U.S. elections have yet to fully demonstrate their influence, while what is eagerly 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 published simultaneously, and the combination of the two will surely create waves.

However, it should be noted that since March, the market's fervent sentiment of 'missing out equals loss' may gradually dissipate. At that time, substantial positive news beneficial to cryptocurrencies will be particularly crucial, such as the submission and approval of ETH spot ETF pledges, the re-mention of the SAB121 repeal proposal, and the ongoing promotion of FIT21, all of which are practical measures that can effectively boost the market.

Before January 20, I personally believe that if the price is suitable, it would be wise to appropriately allocate some quality crypto assets.

December 19 market analysis:

The Bitcoin Policy Research Institute in the U.S. has already drafted an executive order proposal for President Trump and suggested that the country create a strategic Bitcoin reserve (SBR), even considering incorporating it into the financial foreign exchange funding system. If this proposal can indeed be implemented, then Bitcoin's current price may just be the beginning, and the subsequent price may experience greater changes and developments. $BTC