Fed Chairman Powell's latest speech presented a moderate attitude, attracting market follow. When discussing the upcoming interest rate meeting at the end of October, Powell did not provide clear guidance but also did not deny the possibility of rate cuts that the market widely expects. He emphasized that decisions will be based on a comprehensive analysis of economic rise, employment conditions, and inflation data, and stated that if the current policy stance is inappropriate, the Fed will make corresponding adjustments.

However, Powell also pointed out that the current valuation of the U.S. stock market is high, and this statement led to a decline in the stock market. Although the cryptocurrency market has not been significantly affected for the time being, if the decline in U.S. stocks continues, it may spill over into crypto assets. Nevertheless, analysts believe that this impact may be only temporary. Since the market still expects interest rate cuts in the future, the likelihood of investors withdrawing funds is relatively low.

In the long run, the direction of the Fed's policy will continue to be a key factor affecting the financial markets. Investors need to closely follow economic data and the statements of central bank officials to better predict future interest rate changes. At the same time, participants in the cryptocurrency market should also pay attention to the potential chain reactions caused by fluctuations in traditional financial markets and be well-prepared for risk management.