Virtual asset market turns cautious after Powell remarks… mid-term outlook still positive

Jerome Powell, chair of the Federal Reserve (Fed), has recently made remarks that have stirred market volatility, but analysts remain positive about the virtual asset (cryptocurrency) market.

On the 25th (local time), AMB Crypto reported that Sean Young, chief analyst at MEXC, said, "The market is currently taking a cautious stance ahead of the unemployment claims and the Personal Consumption Expenditures (PCE) release," and analyzed, "There was short-term pain from recent liquidations of $1.7 billion in the market, but this is a healthy correction signal."

Matt Mena, digital asset strategist at 21Shares, also shared an optimistic medium-term view and assessed, "Considering expectations for a rate cut in September and two additional cuts within the year, this adjustment is a healthy readjustment rather than a trend reversal."

Meanwhile, Powell earlier said in a statement on the economic outlook on the 23rd, "The risks to employment and inflation have increased, and for that reason we cut rates last week," and added, "Uncertainty surrounding inflation remains high," making cautious remarks.