Recently, the cryptocurrency market has experienced a significant correction, raising concerns among many investors. However, this volatility is not without reason. Many major cryptocurrencies had previously reached all-time highs, and some investors chose to take profits, which is a normal occurrence in the market.

Currently, the key factor that will truly influence the future direction of the encryption currency market is the upcoming public speech by Federal Reserve Chairman Jerome Powell. After experiencing recent market fluctuations, both bulls and bears are waiting for this important signal and proceeding with caution.

Powell's speech is so important for two main reasons. First, historically, speeches at the Jackson Hole conference are often seen as significant policy indicators. Over the past few years, Powell has frequently issued clear signals regarding interest rate policy on this occasion, and market trends have often been closely related to his statements. Second, this speech is likely to set the tone for the Federal Reserve's policy meeting in September. Currently, the market generally expects a 25 basis point rate cut in September, and Powell's attitude will directly influence the direction of this expectation.

It is worth noting that the cryptocurrency market often reacts more sensitively to policies and sentiment than traditional financial markets. Therefore, Powell's speech is likely to trigger significant market fluctuations. If he releases signals leaning towards easing, suggesting or confirming the possibility of a rate cut in September, market confidence may quickly recover, and Bitcoin is expected to end the current pullback and launch a new attack towards the previous highs.

However, we cannot ignore another possibility. If Powell's speech leans towards a hawkish stance, suggesting the potential to maintain high interest rates or even tighten monetary policy further, then the encryption currency market may face additional downward pressure.

Regardless, investors should closely monitor this important speech and adjust their investment strategies in a timely manner based on the latest policy signals. In this uncertain market environment, it is crucial to remain calm and rational.