CoinWorld News:
Market Update: 1. Fed Chairman Powell: Significant progress made on inflation; inflation may return to 2% by end of next year or the year after; labor market remains robust. 2. ECB President Lagarde: We are leading in inflation decline. 3. Telegram Mini Programs developers can convert Telegram Stars into TON tokens. 4. Key events this week: July 3rd 20:15 US June ADP Employment Change, 20:30 US Initial Jobless Claims; July 4th 02:00 Fed releases Monetary Policy Meeting Minutes; July 5th 20:30 US June Unemployment Rate, Nonfarm Payrolls.
Technical Analysis:
Bitcoin: Failed to sustain Monday’s upward trend to 63,600, closing with a long upper shadow. Yesterday saw minor gains but closed bearish; today continues to adjust, signaling a bearish bias. Daily trend has dropped below moving average support; focus below is on 60,000 support near the half-yearly line, with resistance above in the 62,400-62,800 range mentioned last night.
Ethereum: Surged significantly on Monday with a long upper shadow, Tuesday saw minor gains but closed bearish. Today continues to decline, breaking through 3,380 to 3,350 intraday, with a short-term target at 3,240. Operationally, refer to the 4-hour chart with a bearish view on rebounds at 3,410-3,430.
Altcoins: Previously recommended altcoins are now profitable; all NOT positions are exiting, maintaining 20% holdings for upward movement, while second positions refrain from replenishment, awaiting market adjustment before aggressive reentry. Earlier mentioned people are declining; focus shifts to 0.063 if it falls below 0.076.
Market Reaction to Powell’s Remarks:
Following Powell’s remarks last night, markets responded with a downturn. Powell stated significant progress by the Fed on inflation but emphasized the need for confidence in inflation continuing to decline to around 2% before considering easing monetary policy. Powell expects inflation in the US to remain below approximately 2.5% over the next year.
When asked about the possibility of a rate cut in September, Powell responded, “I wouldn’t specify any particular date right now.”
Powell noted the US continues to experience robust growth and a strong labor market, with substantial strides towards improving labor balance seen. The labor market is cooling as anticipated over time. Powell highlighted sticky inflation in the US service sector, linked to wages, emphasizing appropriate constraints in policy. He observed the impact of high rates on the housing market, affirming current policies are achieving desired effects.
As a result of Powell’s speech, the Nasdaq and S&P 500 indices swiftly reversed losses to gains. As of 23:00 Beijing time, Nasdaq and S&P 500 indices rose by 0.28% and 0.08%, respectively. While US stocks rose, the crypto market fell due to Powell’s lack of clarity on rate cuts.
The Fed’s meetings continue to delay action; how long this can persist remains uncertain. With the US hesitating on rate cuts, their own businesses are struggling under current rates, with bankruptcies affecting banks and hardships for small and medium-sized enterprises. As Musk noted, US annual interest payments on debt surpass military spending, becoming the largest government expenditure item. We may be witnessing history unfold once again. As we approach the crossroads of crucial decisions, who will weather this financial storm and emerge victorious? We’ll have to wait and see.