On May 16th, Federal Reserve Chairman Powell stated that he is re-evaluating the monetary policy framework, adjusting related wording to enhance flexibility in addressing inflation and supply shocks, with the review expected to be completed in a few months. He noted that the April PCE inflation expectation is 2.2%, indicating effective inflation control, and the current policy has achieved a "soft landing", which is a rare positive outcome. Facing more frequent and persistent supply shocks, the future framework will incorporate long-term structural factors and seek more flexible policy tools.
Bitunix analyst suggests: Policy adjustment signals will help stabilize market expectations, alleviate interest rate hike pressure, and benefit risk assets. With inflation stabilizing and declining, the policy tends to be loose, which constitutes a medium-term positive for the crypto market. It is recommended to focus on whether BTC 100K support holds steady, and if it does, 105K will be a short-term resistance level. In terms of operation, one can focus on ETH, ecosystem coins, and inflation-resistant tokens with high policy sensitivity.
