Federal Reserve Chairman Powell delivered a striking speech at the Jackson Hole annual meeting, suggesting potential adjustments to monetary policy in the future. Market expectations for a rate cut in September quickly rose to nearly 90%. Against this backdrop, the upcoming release of the July Personal Consumption Expenditures (PCE) price index data has become a key basis for the Federal Reserve's decision-making.

The latest data shows that the U.S. PCE price index rose by 2.6% year-on-year in July, with the core index rising by 2.9%. Although these figures are still above the Federal Reserve's 2% inflation target, Powell specifically mentioned that there may be a greater focus on employment market risks, as U.S. job growth is currently slowing.

For the cryptocurrency market, the impact of this PCE data may be bidirectional:

If the data exceeds expectations, the likelihood of the Federal Reserve lowering interest rates in September will decrease. This could lead to funds flowing from the cryptocurrency market to traditional safe assets, and the prices of major cryptocurrencies such as Bitcoin and Ethereum may experience significant declines. Market panic sentiment may intensify, the financing environment may become more challenging, and many cryptocurrency projects may face severe challenges.

On the contrary, if the data falls below expectations, the likelihood of a rate cut in September will significantly increase. This could lead to an increase in market liquidity, prompting funds to flow into the cryptocurrency market and driving up the prices of various digital assets. However, this situation could also give rise to a market bubble, and if subsequent market sentiment suddenly shifts, many investors may face the risk of being trapped.

Currently, cryptocurrency investors are closely monitoring this key data. Some investors have begun to adjust their portfolios, while more are choosing to adopt a wait-and-see attitude. As the date for the data release approaches, the market atmosphere is becoming increasingly tense, and various rumors and speculations can easily trigger market fluctuations.

Regardless of the outcome, investors should remain vigilant, carefully assess potential risks, and be prepared for various possibilities. It is especially important to stay calm and rational during this uncertain period.