Ahead of the annual global central bank symposium in Jackson Hole, risk assets, including Bitcoin (BTC) and US stocks, continued to decline. However, at the symposium, an unexpectedly dovish statement from the Federal Reserve Chairman sparked a major rebound in the stock market and crypto assets.
The market cautiously returned to expectations of a September interest rate cut. However, the pace and magnitude of rate cuts this year remain limited by economic and employment data. This raises doubts about whether risk assets, which have rebounded sharply and are at high valuations, will continue to rise. The market needs more data to strengthen traders’ confidence in maintaining positions and increase buying enthusiasm. Before the September rate cut, August’s inflation data is still due; if inflation data rises too quickly, the market is likely to revise downward.