Recently, the Bitcoin market has shown some interesting dynamics. Although the strength of short positions seems to be weakening, a rebound may occur in the short term, but the overall market adjustment is still not fully in place. It is worth noting that current investor funds and attention are mainly focused on Ethereum (ETH). Therefore, if investors hope to seize the rebound opportunity, the rise of ETH may exceed that of Bitcoin.

However, one unfavorable factor facing the market is that the possibility of the Federal Reserve lowering interest rates by 25 basis points in September is decreasing. This probability has fallen from over 70% to around 50%. The reasons for this change include various recently released economic indicators, such as a rebound in inflation and a decrease in the unemployment rate, indicating that the economic situation remains relatively good.

More importantly, Federal Reserve official Harker recently stated that the current economic data does not support a rate cut in September. This statement, along with the policy differences between Federal Reserve Chairman Powell and the President, has turned the decision on rate cuts from almost certain to undecided. This uncertainty is causing shocks to the entire financial market.

It is expected that this policy uncertainty will continue to affect market trends in the coming one to two weeks. This is also one of the important reasons why the author believes that the market adjustment is not yet over. Investors should closely follow the subsequent statements from the Federal Reserve and changes in economic data in order to timely adjust their investment strategies.