Federal Reserve Chairman Powell is set to give a speech at the Jackson Hole annual meeting, an event that could have a significant impact on the policy direction for September. Cryptocurrency market participants should pay close attention.

Powell's speech may involve several key aspects: first, his stance on interest rate hikes is crucial. If he hints at a slowdown in rate hikes, Bitcoin may experience an increase. Second, if he mentions that inflation is under control, market sentiment may significantly improve. Moreover, if he discusses the risk of economic recession, some funds may shift towards encryption as a safe haven.

Based on past experience, such speeches often bring opportunities to the market. After Powell's speech last August, Bitcoin rose 10% in one day. In June of this year, after he hinted at interest rate hikes, the market experienced a brief downturn but quickly rebounded, indicating that new opportunities may arise after the bad news has been fully absorbed.

For investors, different strategies may apply to different investment styles. Short-term traders may need to appropriately reduce their positions before speeches and make decisions once the market direction is clear. Leverage traders should pay extra attention to setting stop losses to prevent significant losses during volatility. Long-term holders may view substantial declines as an opportunity to buy in batches, such as when the price of Bitcoin falls below $25,000.

It is worth noting that the trends in related markets may also affect encryption currencies. Significant fluctuations in Nasdaq index futures can impact the digital currency market. A substantial rise in gold prices may drive up Bitcoin. If the dollar index falls below 103, it is generally favorable for the encryption currency market.

During periods of increased market volatility, it is crucial to remain rational and calm. Avoid impulsively chasing prices and selling at losses, and do not invest all your funds at once; instead, follow your established investment strategy.

The market may experience significant fluctuations tonight, and investors should be well prepared, remain vigilant, and analyze market trends rationally.