Powell's speech caused market turmoil, digital currency regulation and market outlook

On April 16, Eastern time, Federal Reserve Chairman Jerome Powell delivered an important speech, which stirred up a thousand waves in the financial market. The speech was rich in content, covering a number of key areas such as monetary policy, the impact of tariff policy, and digital currency regulation, which had a profound impact on the direction of the market.

On the monetary policy front, Powell reiterated the Fed's "wait and see" stance. He made it clear that the Fed will not rush to adjust its monetary policy until it gets clearer economic signals. The U.S. economy remains healthy and the labor market is close to full employment, but inflation is still slightly above the 2% target, although it has fallen. Powell pointed out that the Trump administration's tariff policy has brought a high degree of uncertainty to the U.S. economy, and the current tariff level has exceeded the Fed's previous expected ceiling. If tariffs continue to push inflation up and cause economic growth to slow, the Fed's twin goals of controlling inflation and achieving full employment will face serious challenges. In particular, he stressed that the Fed will prioritize controlling inflation if there is a conflict between employment and inflation targets, because "without price stability, a strong labor market that benefits all Americans in the long term cannot be achieved." In addition, Powell denied the question of whether the Fed would intervene in the event of a sharp market crash, saying that he believed that the current market volatility was a reasonable response to the adjustment of tariff policy, and the market was operating in an orderly manner.

When it comes to digital currencies, Powell said that a regulatory framework for stablecoins needs to be established and that the banking sector is expected to be deregulated on the issue of cryptocurrencies. This statement indicates that the regulatory environment for digital currencies will change in the future. In the long run, the clarification of the regulatory framework for stablecoins will help regulate the development of the digital currency market and provide a more stable foundation for the development of the market, which is a potential bullish factor. The deregulation of the banking sector may prompt more funds to flow into the digital currency sector, which is also conducive to the development of the market to a certain extent. However, the specific impact will depend on the implementation of the subsequent Rules. Due to the market's concerns about the uncertainty of policy changes, the overall trend in the short term is biased towards the market and bullish in the long term.

From a technical point of view, the current market price is at 83,900 points. On the daily level, the price failed to break through the strong pressure level when it rushed to 86,000 points, and then there was a trend of rushing higher and retracement; The 4-hour level showed a volatile trend; The hourly level is temporarily weak. On the whole, the market is in a volatile market, and it is recommended to adopt a high-altitude and low-long strategy. Support levels are 83,000, 81,200, 79,000 and 77,500, while resistance levels are 84,500 and 86,000. You need to pay close attention to market dynamics and reasonably adjust your investment strategy according to the support and pressure levels to cope with market uncertainty.
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