The Bitcoin market has recently experienced a fluctuation, sliding from a high of $124,000 to $114,000, raising concerns among investors. However, this may just be the beginning, and the true market direction may be revealed this Friday.

The upcoming speech by Federal Reserve Chairman Powell is likely to be a key factor in determining the short-term trend of the cryptocurrency market. This phenomenon is not accidental; history has repeatedly demonstrated the significant impact of Federal Reserve policy on Bitcoin prices.

Currently, the technical indicators of Bitcoin suggest that the short-term upward momentum may have been exhausted, while some institutional investors seem to have started taking profits. However, the real focus of the market remains on the Federal Reserve's policy stance.

Based on the current economic data, including an inflation rate dropping to 2.5% and an unemployment rate remaining at 4.1%, the market generally expects Powell to hint at a possible interest rate cut starting in September. However, the magnitude of the cut will be key. If a 25 basis points cut is announced, Bitcoin could rebound to around $120,000; if a 50 basis points cut is announced, it could even push Bitcoin to break through the $130,000 mark.

However, investors also need to be alert to unexpected situations. If Powell's speech fails to clearly mention a rate cut plan, it may trigger sharp fluctuations in the market. This uncertainty is one of the characteristics of the cryptocurrency market and is a key point that investors need to pay attention to at all times.

In any case, Powell's speech will undoubtedly become an important catalyst for the recent Bitcoin price trend. Investors should closely monitor this event and adjust their investment strategies based on the latest policy signals. In this market full of opportunities and risks, it is crucial to remain vigilant and flexible.