According to local time in the United States on Wednesday, Philip Jefferson's nomination as Vice Chairman of the Federal Reserve was confirmed by a vote of 88-10 in the Senate, and the nominees for several other positions in the Fed will also receive votes. Jefferson will be the second African American to serve as Vice Chairman and will also serve as a Governor until 2036. The Vice Chairman's term is four years.

Bitcoin's price remains stagnant, leaving traders and analysts uncertain about its future direction. Despite some bullish predictions, there are also many downside price projections. The upcoming week lacks significant macroeconomic data, with the focus on the Federal Reserve. Bitcoin mining difficulty is expected to decrease by 2.4% in its upcoming automated readjustment on September 5th.

The US dollar began the week steady as investors analyzed US jobs data that showed signs of cooling, leading to expectations that the Federal Reserve was nearing the end of its monetary tightening cycle. Although US job growth picked up in August, the unemployment rate rose to 3.8% and wage gains moderated.

According to Bloomberg Intelligence's senior macro strategist, Mike McGlone, Bitcoin will not experience a resurgence until risk assets such as stocks crash. McGlone notes that Bitcoin typically outperforms when the liquidity pump is on and underperforms when it is off, and currently, the liquidity pump is clearly off.

Traders in the bitcoin market are pricing in "tail risk," as indicated by the relative richness of out-of-the-money call and put options. This suggests a higher possibility of an investment moving more than three standard deviations from the mean. The butterfly index, which gauges the relative richness of these options, has risen to yearly highs, indicating traders' fear of tail risk or sensitivity to uncertainty.

August 23, the "Fed Watch" data from CME shows that the probability of the Federal Reserve maintaining interest rates at 5.25%-5.50% in September is 84.5%, and the probability of raising interest rates by 25 basis points to the 5.50%-5.75% range is 15.5%.

Federal Reserve Meeting Minutes - Inflation risks may require further policy tightening. Two Fed officials lean towards keeping rates stable in July. Most Fed officials believe there is a "significant" upward risk to inflation.

According to Goldman Sachs economists, the Federal Reserve is expected to begin cutting interest rates before the end of June 2024 and gradually lower rates on a quarterly basis from then on. Goldman Sachs economists, including Jan Hatzius and David Mericle, wrote in a report last Sunday, "We have lowered our expectations because once inflation approaches its target, we want to normalize fund rates from restrictive levels.

Goldman Sachs stated in a research report released in the early hours of the 14th that our baseline prediction is that the Federal Reserve's FOMC will begin lowering the federal funds rate in the second quarter of 2024. We expect a quarterly rate cut of 25 basis points. If the FOMC is more confident that inflation will not return, it can cut interest rates at a faster pace.

According to John Reed Stark, former director of SEC Internet law enforcement, the US cryptocurrency field is facing an "unprecedented financial regulatory impact" on X. Stark first emphasized the "new activity supervision plan" launched by the Federal Reserve (Fed) on August 8. Stark said that part of the plan is aimed at regulating US banks' participation in dollar-backed tokens, such as the recently launched PYUSD or other stablecoins. This will be a "challenging" task for most traditional banks, as the Fed will judge their ability to manage the many risks associated with these tokens.