Cryptocurrency investors are closely monitoring the upcoming important event. On the evening of August 22, Federal Reserve Chairman Powell will deliver a speech at the Jackson Hole Global Central Bank Annual Meeting, which could have a significant impact on the interest rate decision in September.

Powell's speech is expected to evaluate the economic outlook and policy framework. The market is particularly focused on whether there will be an interest rate cut in September and the possible magnitude of such a cut. The importance of this speech lies in the fact that the current U.S. economy presents a complex situation: on one hand, tariffs have pushed up inflation, with the Producer Price Index ( PPI ) soaring by 3.3%, reaching a three-year high; on the other hand, the labor market shows signs of cooling, with the unemployment rate climbing to 4.2%. This contradictory situation exposes the cryptocurrency market to the risk of potential reversals between bullish and bearish conditions at any time.

There are differences in the market regarding the expectation of a rate cut in September. The mainstream view suggests that the likelihood of a 25 basis point cut exceeds 85%. However, some more aggressive predictions indicate that there could be a 50 basis point cut, citing recent employment data falling short of expectations, with job additions stagnating almost completely in May to July. It is worth noting that some financial institutions, such as Morgan Stanley, have warned that Powell's remarks could dampen market expectations for a 50 basis point cut.

For cryptocurrency investors, it is crucial to remain rational at this critical moment. Market sentiment may fluctuate dramatically due to various speculations and expectations, but investors need to focus on substantial information rather than being swayed by short-term emotions.

In the upcoming market operations, investors should pay close attention to several key indicators, among which the US Dollar Index is particularly important. The movement of the dollar often shows an inverse relationship with the cryptocurrency market, so changes in the Dollar Index may provide significant trading signals.

Overall, Powell's speech may have a significant impact on the cryptocurrency market. Regardless of the outcome, investors should be well-prepared and develop appropriate risk management strategies to cope with potential market fluctuations.