According to ChainCatcher news, foreign media reported that after a government report showed last month's inflation slightly higher than expected, traders increased their bets that the Federal Reserve will cut interest rates by 25 basis points in November. Following the release of the CPI data, traders began to withdraw their bets that the Federal Reserve would pause rate cuts in November, and now expect the Fed to cut rates by 25 basis points in the upcoming meetings.

ChainCatcher news, according to Jinshi reports, based on a Bloomberg survey of economists, the month-on-month growth rate of CPI and the core CPI excluding food and energy may record 0.1% and 0.2% respectively. Core CPI is seen as a better signal for future inflation. The prices of groceries and gasoline can sometimes fluctuate significantly, exaggerating the overall price level.If there is a significant increase in core CPI, financial markets may experience turbulence and reignite considerations about the Federal Reserve's "pause" on interest rate cuts—if further progress on inflation issues stalls, the Federal Reserve may abandon rate cuts in November or December.

ChainCatcher news, according to Jinshi reports, based on market news, Bridgewater founder Dalio does not expect significant interest rate cuts.

ChainCatcher news, according to Jinshi, Tim Horan, Chief Investment Officer of the Fixed Income Department at Chilton Trust, stated that strong job creation confirms the Federal Reserve's actions and indicates that a soft landing is imminent.Tim Horan mentioned that the unexpectedly high 254,000 new non-farm jobs in September "allows the Federal Reserve to be absolutely pragmatic," even considering pausing (rate cuts) in November "to digest the election results without having to worry about falling behind the curve." With the job market performing quite well, the Federal Reserve can calmly adjust monetary policy, understanding how elected officials plan to handle government spending.Tim Horan stated that although officials avoid commenting on fiscal policy, "the Federal Reserve has to worry" about the continuously expanding national debt.

ChainCatcher news, according to Jinshi reports, the non-farm payroll data for September shows that the U.S. job market added 254,000 jobs last month, and U.S. stock index futures rose. The S&P 500 futures increased by 0.7%, higher than the approximately 0.3% before the data was released. Traders are weighing the positive signals of economic strength in the report, as well as the possibility that strong job growth may lead the Federal Reserve to slow down the pace of interest rate cuts.

ChainCatcher news, according to Cointelegraph, investment management company Apollo Crypto has released a report highlighting the potential for a second wave of growth in decentralized finance (DeFi), viewing macroeconomic factors such as the recent interest rate cuts by the Federal Reserve and credit expansion in China as key drivers of DeFi growth.The report points out that after experiencing the peak of "DeFi summer" in 2020, the market slowed down. However, protocols like Maker, Uniswap, and Aave have become mainstream in the industry. As of now, the total TVL of DeFi is approximately $105 billion.The report also mentions the decentralized finance (DeFi) infrastructure, stating that "the focus in recent years has been on building cryptocurrency infrastructure" to establish "a large amount of cheap block space." This allows DApps to access block space with "higher performance speeds" and reduces transaction costs on L2 scaling solutions.

ChainCatcher news, on Monday local time, Federal Reserve Chairman Powell stated during a speech that if the economy performs as expected, there may be two more rate cuts this year, totaling 50 basis points. The market perceives Powell's overall remarks as "hawkish." Following Powell's speech, the market significantly reduced the probability of a 50 basis point rate cut by the Federal Reserve in November.According to 4E observations, the three major U.S. stock indices fell after Powell's speech but began to rise in the final trading hours, ultimately closing slightly higher, with both the Dow Jones and the S&P 500 reaching new closing highs. Historically, U.S. stocks perform poorly in September, but this year the Dow rose 1.85%, the S&P 500 increased by 2.02%, and the Nasdaq gained 2.68%. Notably, the Dow and the S&P 500 recorded five consecutive monthly gains.The cryptocurrency market generally declined, with Bitcoin down 1.81% at $63,600, and Ethereum slightly down by 0.27%. Data shows that Bitcoin rose 7.35% in September, marking its best historical performance. It is worth noting that historically, whenever Bitcoin has risen in September, it has continued to rise until the end of the year. Gold fell by 0.47%, with a 4.74% increase in September; the U.S. dollar index rose by 0.30%, with a cumulative decline of 0.93% in September.After the Federal Reserve's anticipated rate cut in September, the pace of global central bank rate cuts has accelerated, significantly improving the macro environment and increasing investors' risk appetite. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, bulk gold, and foreign exchange. This Friday, the U.S. non-farm payroll data for September will be released, providing further key insights into the U.S. economic situation and the Federal Reserve's rate cuts. 4E reminds you to pay attention to market volatility risks and to allocate assets wisely.

ChainCatcher news, Coinbase Institutional recently released the "Takeaways from Token2049" report, summarizing the key insights from the Token2049 and Solana Breakpoint conferences held in Singapore.The report stated: "We expect Q4 2024 to be constructive, driven by U.S. rate cuts and significant fiscal and monetary stimulus from China, which will enhance market liquidity and support Bitcoin's performance." The report focuses on Bitcoin and high beta crypto assets, maintaining an optimistic outlook on the overall market in the coming months.The report also discussed Ethereum's recent predicament, particularly its rising transaction fees: "On-chain activity is increasing with the rise in DEX trading volume and Ethereum Gas fees." However, despite the recent launch of a spot ETH ETF in the U.S., it has not had the same effect as Bitcoin. The report described: "While many market participants are bullish on BTC, we encountered some industry personnel who are skeptical about ETH, as the token does not seem to have benefited from the spot ETH ETF launched in the U.S. over two months ago."

ChainCatcher message, according to a report published by CCData, the five major centralized stablecoins collectively hold nearly $125 billion in U.S. Treasury bonds. For every 50 basis points (bps) cut in interest rates by the Federal Reserve, there could be a loss of approximately $625 million in interest income. The report shows that U.S. Treasury bonds account for 80.2% of the reserves held by major stablecoins.Data from the Chicago Mercantile Exchange's FedWatch tool indicates that the market expects a total interest rate cut of 75 basis points by the end of 2024. If this prediction comes true, stablecoins could face an additional loss of $937.5 million in income, bringing the total potential loss due to the Federal Reserve's easing policy to $1.5625 billion.Among the affected stablecoins, Tether's USDT holds the largest share of U.S. Treasury-backed reserves, totaling up to $93.2 billion, including U.S. Treasury bonds and repurchase agreements. Following closely is Circle's USD Coin (USDC), which holds $28.7 billion in U.S. Treasury bonds through the Circle Reserve Fund, while other stablecoins have smaller positions in Treasury bonds.Despite these potential financial setbacks, the stablecoin market continues to show resilience. According to CCData, in September, the total market capitalization of stablecoins increased by 1.50%, reaching $172 billion, marking 12 consecutive months of growth.

ChainCatcher news, according to Cryptonews, the Federal Reserve recently decided to cut interest rates for the first time since March 2020, which is expected to impact the income streams of the five major centralized stablecoins. According to a report released by CCData on September 27, these stablecoins collectively hold nearly $125 billion in U.S. Treasury securities, and for every 50 basis points (bps) cut in interest rates, they could lose about $625 million in interest income. The report indicates that U.S. Treasury securities account for 80.2% of the reserves held by major stablecoins.Data from the Chicago Mercantile Exchange's FedWatch tool shows that the market expects a total interest rate cut of 75 basis points by the end of 2024, including a 50 basis point cut in November and a 25 basis point cut in December. If these predictions come true, stablecoins could face an additional income loss of $937.5 million, bringing the total potential loss from the Federal Reserve's easing policy to $1.5625 billion.Among the affected stablecoins, Tether's USDT holds the largest share of U.S. Treasury-backed reserves, totaling up to $93.2 billion, including U.S. Treasuries and repurchase agreements. Following closely is Circle's USD Coin (USDC), which holds $28.7 billion in U.S. Treasuries through the Circle Reserve Fund. Other stablecoins, such as First Digital USD (FDUSD), PayPal USD (PYUSD), and TrueUSD (TUSD), have smaller Treasury positions of $1.83 billion, $634 million, and $502 million, respectively.Despite these potential financial setbacks, the stablecoin market continues to show resilience. According to CCData, in September, the total market capitalization of stablecoins increased by 1.50%, reaching $172 billion, marking 12 consecutive months of growth.

ChainCatcher news, BitMEX co-founder Arthur Hayes posted on social media that based on the Federal Reserve's historical responses to high volatility, we know that once they start cutting interest rates, they usually continue to lower them until rates are close to 0%. The Federal Reserve will continue to cut rates, and the banking system will continue to release more dollars. Regardless of who wins the U.S. presidential election, the government will also continue to borrow to gain public support. Economic difficulties will be addressed through lower euro rates set by the European Central Bank. Meanwhile, governments will begin to pressure banks to lend more to local businesses to provide job opportunities and rebuild the increasingly crumbling infrastructure.As the Federal Reserve cuts rates and U.S. banks issue more credit, the dollar will weaken. This provides an opportunity for the Chinese government to increase credit growth while maintaining the stability of the RMB to USD exchange rate. If the Federal Reserve prints money, the People's Bank of China can take similar measures. This week, the PBOC announced a series of interest rate cuts across the Chinese financial system. This is just the beginning; the real "big weapon" will emerge when banks issue more credit. If other major economies are now easing monetary policy, the pressure on the Bank of Japan to raise rates quickly will decrease.Major global economies are once again suppressing the volatility of their countries or economies by lowering the cost of funds and increasing the supply of funds. If you have fully invested in cryptocurrencies, relax and watch the fiat value of your portfolio soar. If you still have some fiat funds, seize the opportunity to enter the crypto market.

ChainCatcher news, according to CoinDesk, Presto Research's analyst based in Singapore, Rick Maeda, pointed out that today's interest rate cut and reserve requirement ratio reduction by the People's Bank of China hardly triggered a reaction in the cryptocurrency market, but led to a rise in Asian stock markets, with the Hong Kong Hang Seng Index up 3.2% and the Shanghai Composite Index up 4.15%.The lack of response from Bitcoin to this news contrasts with the rise in Chinese stock indices, highlighting that its current beta seems to be more closely linked to Federal Reserve policy and the U.S. market, especially after last week's FOMC meeting, with the correlation to U.S. stocks nearing a two-year high.

ChainCatcher news, according to Jinshi reports, JPMorgan CEO Dimon stated that the Federal Reserve's interest rate cuts will not affect the U.S. elections, and Trump's views may bring more uncertainty to the world. He hopes the U.S. can achieve a soft landing but is skeptical about inflation.

ChainCatcher news, according to CoinDesk, Bitcoin has risen by 7% in the past five days, breaking the $64,000 mark for the first time since August 26. Meanwhile, gold has set new all-time highs over 30 times this year, surpassing $2,600 per ounce. Charlie Bilello, Chief Market Strategist at investment management and financial planning firm Creative Planning, stated that this is the first time since Bitcoin's inception in 2009 that both Bitcoin and gold have become the best-performing assets of the year.Analyst James Van Straten noted that the outstanding performance of Bitcoin and gold is related to the increase in global liquidity, the expansion of global central bank balance sheets, and the recent interest rate cuts by the Federal Reserve, which stimulate investment and economic activity. The current balance sheet of the Federal Reserve stands at $7.1 trillion, and although quantitative tightening is still underway, the pace has slowed. The reduction in reverse repo balances, now just above $300 billion, has released liquidity back into the financial system. This has a stimulating effect, increasing the availability of funds for loans, investments, and overall economic activity.From a broader perspective, the total balance sheet of the world's 15 largest central banks (including the U.S., EU, Japan, and China) is approaching $31 trillion. While this figure itself is not the focus, the trend shows a global recovery of central bank balance sheets since July, rising from about $30 trillion. This increase in liquidity is particularly stimulating for Bitcoin, as its price movements often correspond with liquidity trends. Additionally, the Federal Reserve's 50 basis point rate cut further supported the rise of both Bitcoin and gold.

ChainCatcher News: Former U.S. President Trump stated that the Federal Reserve's interest rate cuts are politically motivated. (Jin Ten)

ChainCatcher news, according to Kaiko, traders flocked to the Bitcoin market before the Federal Reserve made its decision to cut interest rates yesterday.After the Federal Reserve decided to cut rates by 50 basis points, the cumulative trading volume Delta measuring net buys and sells was positive at $50 million.

ChainCatcher news, the Federal Reserve announced after the FOMC meeting that the target range for the federal funds rate has been lowered from 5.25% to 5.50% to 4.75% to 5.0%, a decrease of 50 basis points.In response, HashKey Group Chief Analyst Jeffrey Ding stated: The darkness before dawn has passed, and a new wave of market momentum has begun. The Federal Reserve's 50 basis point rate cut signifies its clear concerns about the current economic environment, necessitating a more substantial initiation of the rate-cutting cycle. Recently, the global economy has faced liquidity challenges, and this rate cut decision has injected new vitality into the global financial markets.Bitcoin, as the "digital gold" of the new era, has performed strongly against this backdrop, briefly breaking above $62,000. However, it is not just Bitcoin that benefits; the entire cryptocurrency market is expected to experience a new wave of momentum under the loose monetary policy. It is important to note that, unlike traditional markets, Bitcoin's performance is more influenced by the liquidity of the dollar rather than changes in the U.S. economic outlook. This means that in the future loose monetary environment, Bitcoin may continue to be the preferred asset for investors seeking to hedge against inflation and seek safe havens.As the rate-cutting cycle continues, the cryptocurrency market may enter a longer period of upward momentum. Market volatility still exists, but this round of cryptocurrency trends may attract more funds and innovation into the field, pushing the entire crypto ecosystem into a new stage of development.

ChainCatcher news, Binance CEO Richard Teng commented on the expectations of interest rate cuts, stating, "We expect that the expectations of interest rate cuts will have a significant impact on the prices of crypto assets. Lower interest rates enhance the liquidity of the financial system, thereby boosting the demand for high-yield, high-risk assets, including cryptocurrencies. For example, from February 2020 to February 2022, when interest rates were near zero, the price of Bitcoin increased by 375%.Lower interest rates may raise concerns about inflation, prompting some investors to turn to cryptocurrencies to protect their purchasing power; low rates may also weaken the dollar, leading more investors to view crypto assets as an alternative store of value. Bitcoin and other crypto assets have unique characteristics that may influence their prospects during periods of interest rate cuts. One key factor to consider is the recent Bitcoin halving, as historically, price increases have generally occurred 6-18 months after similar events. The launch of spot ETFs could also facilitate easier transitions between stocks and cryptocurrencies, allowing the liquidity growth brought by interest rate cuts to flow into the crypto market.Moreover, while September is typically a weak month for crypto assets, prices usually begin to rebound in October, and the expectations of interest rate cuts may provide additional momentum as prices recover. The impact of the Federal Reserve's interest rate cuts on the crypto asset market remains uncertain, but several indicators suggest that the policy changes in September may be timely for cryptocurrency investors. Lower borrowing costs and increased liquidity present a hopeful outlook for crypto assets. Historical trends and unique cryptocurrency-specific variables further enhance optimism that these policy changes could foster growth."