U.S. Federal Reserve Chairman Powell's Speech and Market Outlook

U.S. Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech at the Thomas Laubach Research Conference on "Perspectives on Monetary Policy."

Investors in the cryptocurrency market are focusing on Powell's upcoming speech after hawkish remarks from other central bank officials.

Bitcoin (BTC) remained stagnant below $27,000, while most major cryptocurrencies saw moderate losses.

The dollar index retreated from its two-month high, and Nasdaq futures indicated a flat opening in traditional markets.

Treasury yields increased as the probability of a 25 basis point interest rate hike next month rose, curbing investor risk appetite.

The 10-year Treasury note yield reached its highest level since mid-March, and the two-year yield hit a two-month high.

Bitcoin's movement has recently aligned with gold rather than the Nasdaq, moving in the opposite direction of bond yields.

St. Louis Fed President James Bullard and Dallas Fed President Lorie Logan's hawkish comments shattered confidence in the Fed pausing liquidity reduction and hinted at higher interest rates.

Optimism about a U.S. debt ceiling deal waned as Republican hardliners may block it without significant spending cuts.

Powell's speech is expected to maintain a risk-averse sentiment as the week comes to a close, with observers anticipating a hawkish tone.