As Fed Chairman Powell is about to speak at the Jackson Hole Central Bank annual meeting, the Crypto Assets market is at a critical crossroads. This annual meeting has traditionally been seen as a barometer for the Fed's policy direction, and its importance is self-evident.

Looking back, Powell's tough stance at this conference in 2022 triggered a significant drop in global assets, with Bitcoin halving in value over the next six months. In 2013, then-Fed Chairman Bernanke hinted at quantitative easing, leading to a short-term surge in gold prices.

The current economic situation is more complex. The unemployment rate in the United States has risen to a four-year high, but the inflation rate remains above 3%. The market generally expects a potential interest rate cut in September; however, historical experience shows that Powell's remarks often come as a surprise. In his last six important speeches, five led to significant declines in the S&P 500 index, with an average drop of over 3%.

For the Crypto Assets market, Powell's speech may bring three different outcomes:

If Powell takes a hawkish stance and continues to suppress inflation, Bitcoin may face serious sell-offs, and other crypto assets may see even larger declines.

If Powell sends a dovish signal, suggesting an imminent rate cut, the price of Bitcoin may surge in the short term, but this increase may not last long.

The third possibility is that Powell maintains a vague stance, which could lead to significant market volatility, posing challenges for investors.

Regardless of the final outcome, this speech could become an important turning point for the crypto assets market in 2025. Investors need to closely monitor the developments and be prepared to respond to various possibilities.