Recently, Fed Chairman Powell delivered a thought-provoking speech at the Jackson Hole conference. He reviewed the economic difficulties following the 2008 financial crisis, pointing out that the policy interest rate lingered at the effective lower bound (ELB) for as long as seven years, which led to weak economic growth and a slow recovery.

Powell emphasized that even a slight economic slowdown could cause the policy interest rate to return to the ELB, which would not only exacerbate the downward trend in inflation but could also push up real interest rates. He also mentioned that the economic conditions leading to the ELB and the adjustments to the framework in 2020 are influenced by persistent global factors, which had been temporarily interrupted during the pandemic.

From an investment perspective, these remarks may have a certain impact on the cryptocurrency market, especially Bitcoin. In the short term, the uncertainty of the economic outlook may lead investors to prefer safe assets, reducing investments in high-risk assets like Bitcoin. Higher real interest rates may also suppress investors' interest in cryptocurrencies.

However, in the long run, the situation may be different. If the economy eventually stabilizes and inflation expectations are adjusted, Bitcoin's appeal as a hedge against inflation may re-emerge. As the market gradually adapts to the new economic environment, the Bitcoin market may reach a new equilibrium.

Powell's speech not only reviewed the past but also provided us with an important perspective for understanding the current economic challenges. It reminds us that the effects of economic policy are often long-term, and even seemingly minor economic fluctuations can trigger a chain reaction. For investors, closely monitoring these macroeconomic trends and adjusting investment strategies accordingly will become increasingly important.