Powell hinted at a rate cut, will the Fed make a big move in September? Bitcoin soared to 65,000! Is it a real breakthrough or ?
Yesterday, Powell mentioned at the Jackson Hole Annual Meeting that "the time is ripe for rate cuts" and hinted that the Fed may start a rate cut cycle at the upcoming September meeting. Although he did not provide a specific path and speed for rate cuts, he only emphasized that future policies will depend on "upcoming data" and "balance of risks", but these words have been interpreted by the market and major institutional media as a strong signal of a September rate cut.
1. Market sentiment is ignited, and Bitcoin breaks through key pressure levels
Driven by this optimistic sentiment, Bitcoin has also strongly broken through the $62,000 pressure level that was previously considered difficult to break through, and rushed to $65,000 in one fell swoop.
On the surface, this is a positive market reaction, which seems to indicate that Bitcoin is about to start a new round of big gains. However, is the logic behind it really so simple? Does the main force have a deeper plot by pulling the market through this painless "good news"?
Is the real trend started? If Bitcoin can hold steady and continue to rise after breaking through $65,000, accompanied by an increase in trading volume and a strengthening of technical indicators, then this breakthrough may indeed mean the beginning of a new round of gains. But the premise is that the market needs to continue to have new positive support, rather than just relying on an ambiguous hint of a rate cut.
Guard against over-optimism: Although the expectation of a rate cut may support Bitcoin's short-term rise, Powell's uncertainty about future policies should not be ignored. Once market sentiment changes, it may quickly trigger adjustments.
Whether this breakthrough is a real trend start or a "conspiracy" to lure more, we should keep in mind that the market is always unpredictable
Reasonable control of positions: In the case of high market uncertainty, investors are advised to reasonably control their positions, avoid excessive pursuit of high prices, and maintain a certain degree of financial flexibility to cope with possible market fluctuations.
