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Recently, the Crypto Assets market has shown a synchronized fall trend with the US stock market, attracting investors' follow. From the evening of August 18 to the morning of the 20th, the overall market performance was weak, with notable declines in prices of digital assets such as ETH.
This phenomenon may stem from two main factors:
Firstly, there are only two days left until Chairman Powell's important speech at the Federal Reserve's annual meeting, and the market seems to be pressuring the decision-makers in this way, hoping to accelerate the pace of interest rate cuts in September. This move by investors may be aimed at influencing the Federal Reserve's policy direction.
Secondly, this performance in the market may also be conveying a signal: the Federal Reserve might maintain its current policy without considering interest rate cuts for the time being. This means that the previous upward trend may enter a consolidation phase, and the market is waiting for the Federal Reserve's next specific action.
Regardless, the current market trends reflect investors' high sensitivity to the direction of the Federal Reserve's policies. In the coming days, market participants will closely follow any statements from the Federal Reserve to seek clues about the direction of economic policy. This uncertainty may continue to impact the volatility of Crypto Assets and traditional financial markets in the short term.
As an investor, it is particularly important to stay calm and rational in this complex and ever-changing market environment. Continuously follow market dynamics while cautiously assessing various possibilities will help in making more informed investment decisions.