“Dovish” remarks boost! Cryptocurrencies rebound across the board, with Bitcoin returning to USD 87,000.
Source: Securities Times
The cryptocurrency market experienced a broad-based rally.
From the evening of November 23 to the early hours of November 24, Beijing time, the entire cryptocurrency market surged significantly.$Bitcoin (BTC.CC)$The price rose above $87,000, with a 24-hour increase exceeding 3%.$Ethereum (ETH.CC)$、 $Solana (SOL.CC)$ At one point, it surged over 4%.
Recently, volatility in the cryptocurrency market has intensified. Since the beginning of this year, Bitcoin had once risen above $126,000 but recently pulled back near $80,000, representing a significant correction.
Industry insiders believe that the volatility of crypto assets far exceeds that of traditional assets. In the short term, attention should be paid to the effectiveness of the $80,000 support level. If the $80,000 support holds firm, the market may experience a certain degree of rebound. However, the strength and sustainability of the rebound remain uncertain due to multiple adverse factors currently facing the market that have not yet been fully resolved.
If the $80,000 support level is effectively broken, the price of Bitcoin may further decline to seek a new support zone. Investors need to rationally assess risks and proceed with caution in their investment strategies.
In terms of news updates, opinions within the Federal Reserve regarding the prospect of a December interest rate cut have become increasingly divided.
On November 21 local time, Williams, President of the New York Federal Reserve Bank and considered the ‘third-in-command’ of the Federal Reserve, delivered a ‘dovish’ statement. He argued that as downside risks in the labor market have increased while upside risks to inflation have eased, there is still room for further interest rate cuts by the Fed in the near term. Following this ‘dovish’ statement, traders’ bets on a December rate cut by the Federal Reserve notably rose. According to the CME FedWatch Tool, after Williams’ speech on Friday, traders in the interest rate futures market sharply raised the probability expectation of a December rate cut by the Federal Reserve to about 70%, nearly doubling from less than 40% the previous day.
Additionally, Federal Reserve Governor Milan stated that if his vote becomes the decisive one, he would support a 25-basis-point rate cut. He also pointed out that labor market data fell short of expected strength.
Boosted by the ‘dovish’ remarks, all three major U.S. stock indexes closed higher on November 21 local time, $Dow Jones Industrial Average (.DJI.US)$ up 1.08%,$S&P 500 Index (.SPX.US)$up 0.98%, $Nasdaq Composite Index (.IXIC.US)$ Up 0.88%. However, for the entire week, the Dow Jones fell by 1.91%, the S&P 500 Index dropped by 1.95%, and the Nasdaq Composite declined by 2.74%.
On Monday, futures of the three major U.S. stock indexes opened higher across the board. As of the time of writing, $E-mini Dow Futures (DEC5) (YMmain.US)$ up 0.35%, $E-mini NASDAQ 100 Futures (DEC5) (NQmain.US)$ up 0.70%, $E-mini S&P 500 Futures (DEC5) (ESmain.US)$ up 0.5%.
However, on November 22 local time, Susan Collins, President of the Boston Federal Reserve Bank, who has voting rights this year, stated that she believes there is no need for the Federal Reserve to continue cutting interest rates in December.
Collins, speaking on the sidelines of an economic conference that day, noted that the Federal Reserve had implemented two 25-basis-point interest rate cuts since August, bringing the monetary policy stance slightly toward a more restrictive position to curb inflation. Collins pointed out that given the inflation rate remains persistently above the Fed’s 2% target, such a policy stance might still be appropriate, especially against the backdrop of a robust financial market supporting economic resilience.
Collins’ remarks further underscore the divisions among policymakers regarding future monetary policy actions. Following the Fed’s second consecutive interest rate cut in October, several officials expressed opposition to or uncertainty about a third consecutive rate cut in December. The minutes from the Fed’s meeting last week showed significant divergence among policymakers on monetary policy, compounded by the absence of key economic data due to the government shutdown, making their assessment of economic conditions even more complex.
Beginner’s Guide: Learn How to Invest in Crypto in 3 Minutes
Finally, here’s a small perk for fellow investors. Fellow investors are welcome to participate.Bitcoin Party Event>>
*This event is only available to HK invited users. Click to learn more.Detailed rules of the event >>
If you have not yet deposited funds, join Futu now to receive up to $1600 worth of Bitcoin (BTC) for free and enter the market at zero cost.Click to participate>>
*This promotion is only available to users in Hong Kong.
Editor/Rocky
