Last night, Federal Reserve Chairman Powell’s remarks had a significant impact on the cryptocurrency market. He stopped short of taking a clear stance on cutting interest rates, instead highlighting the strength of the job market.

1️⃣According to July data, the Federal Reserve’s interest rate remains at 5-5.25%, and market expectations for an interest rate hike in July are as high as 91%. This expectation is contrary to the interest rate cut widely expected by the market, causing sharp fluctuations in the price of Bitcoin.

2️⃣The strong performance of the U.S. job market is one of the key factors why the Federal Reserve remains cautious on cutting interest rates. The strong employment data reflects the stability and growth potential of consumer and household income, which may cause the Federal Reserve to delay the decision to cut interest rates, thus putting pressure on risk assets such as Bitcoin.

3️⃣According to the CME Group’s expectations for an interest rate cut in 2024, it is unusually low, indicating that the market’s expectations for interest rate cuts in the short term are not high. Interest rate cuts are usually seen as measures to increase market liquidity and stimulate the economy, and are usually positive for the cryptocurrency market, especially Bitcoin.

4️⃣However, given the current macroeconomic conditions and the strength of the job market, the possibility of an interest rate cut in the short term is reduced, which may affect the short-term trend of assets such as Bitcoin.

5️⃣In this market environment, everyone should remain cautious, reduce frequent transactions, observe market dynamics more, and make less impulsive decisions. Correct timing and strategy are crucial to seizing market opportunities.