Preview: Powell will deliver a speech tonight, which may determine the pace of interest rate cuts and monetary policy expectations

Tonight at 00:20 am Beijing time on Wednesday, Federal Reserve Chairperson Jerome Powell will speak at an event hosted by the National Association for Business Economics with the theme of "Economic Outlook and Monetary Policy". Powell's speech could shape market expectations for the pace of interest rate cuts and overall monetary policy, thus determining whether the current downward trend in the cryptocurrency market deepens or stabilizes. Blockchain data firm Santiment previously pointed out that Friday's sell-off was not solely driven by the tariff news. Retail traders were quick to blame the tariff standoff for the slump, but deeper structural problems are building up, including excessive leverage and extreme concentration of long positions. Investors are watching closely for clues about the timing and magnitude of the rate cut tonight from Powell. At present, the market generally expects the Federal Reserve to cut interest rates by 25 basis points in October and December, with the probability of the future market reflecting as high as 97% and 89% respectively. The speech is expected to clarify the Fed's views on inflation, growth and the impact of tariffs. Powell's tone will determine whether market confidence recovers or falls further.