The global financial community is holding its breath as Federal Reserve Chairman Powell is about to deliver an important speech in Jackson Hole. This event is not only crucial for traditional financial markets but could also trigger significant volatility in the encryption currency sector.

Looking back, Powell's remarks have often had a profound impact on the cryptocurrency market. In 2022, he emphasized his determination to combat inflation, leading to market expectations of continued interest rate hikes, which caused Bitcoin's price to plummet significantly, and other mainstream cryptocurrencies were also severely affected. In contrast, when he hinted at a possible adjustment to interest rate policy in 2024, Bitcoin's price quickly surged over 5%, instantly reigniting market enthusiasm.

In this speech, market speculation about interest rate cuts is rising and falling. If Powell signals a rate cut, a lower interest rate environment usually benefits encryption assets like Bitcoin, which could attract a large influx of funds into this area, driving prices up. However, if he takes a tough stance, emphasizing the need to continue controlling inflation and maintaining high interest rates, the cryptocurrency market may face downward pressure due to capital outflows.

Historical data shows that the trading volume and volatility of the cryptocurrency market often significantly increase around Powell's speeches. For example, during the speeches in 2023, Bitcoin's intraday volatility exceeded 10% at one point, and many investors experienced tremendous fluctuations in their wealth during this market trend.

Regardless of the outcome, this is undoubtedly an important moment that cryptocurrency investors need to pay close attention to. Market participants should be well prepared to cope with potential volatility. During this critical period, maintaining calm and rational analysis is particularly important; investors need to weigh risks and opportunities and develop suitable investment strategies.