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4E: The Federal Reserve keeps interest rates unchanged, slows down balance sheet reduction to release liquidity, and both the US stock market and cryptocurrency market rise collectively

ChainCatcher news, the Federal Reserve decided to keep the policy interest rate unchanged, in line with market expectations. At the same time, it announced a significant slowdown in the pace of balance sheet reduction (QT), easing market liquidity pressures. Powell reassured investors that the risk of recession is low, the U.S. economy remains strong, and the job market is still solid.According to 4E monitoring, the Fed's dovish stance boosted risk assets, with all three major U.S. stock indices rising on Wednesday: the S&P 500 up 1.08%, the Dow up 0.92%, and the Nasdaq up 1.41%. Tech stocks led the gains, with Tesla rising 4.68% and Nvidia up 1.81%.The cryptocurrency market rebounded significantly, with Bitcoin continuing to rise to $87,453 driven by tech stocks, before slightly retreating to $85,866 at the time of writing, a 24-hour increase of 3.6%. Other major tokens also rose collectively, with Ethereum returning above $2,000, while XRP surged over 11% due to the SEC dropping its appeal against Ripple.In the forex commodities sector, the U.S. dollar index soared, but the increase quickly narrowed to 0.21% after the Fed announced its decision to hold steady; U.S. oil closed up 0.39%; spot gold prices hit a historic high during trading for two consecutive days, approaching $3,052 during Powell's press conference.Powell acknowledged at the press conference that Trump's economic policies have brought significant uncertainty to the U.S. economy, but reiterated that the Fed is not in a hurry to adjust monetary policy. The updated dot plot indicates that the Fed will cut interest rates twice this year, consistent with the forecast from December last year. At the same time, the Fed downgraded its economic growth forecast while raising its inflation expectations, showing characteristics of "stagflation."

4E: U.S. stocks and Bitcoin fell ahead of the Federal Reserve's decision, while gold reached a new high

ChainCatcher news reports that, according to 4E monitoring, the three major U.S. stock indices ended a two-day rally on Tuesday, with the Nasdaq down 1.71%, the S&P 500 down 1.06%, and the Dow down 0.62%. Tech stocks led the decline, with Tesla plunging 5.34% due to increased competition, and Nvidia's stock dropping 3.35% as new products from the GTC conference failed to boost its price.The cryptocurrency market experienced a downward trend, dragged down by the weak opening of U.S. stocks. Bitcoin quickly fell to around $81,000 last night, rebounding only after the U.S. stock market closed, and was reported at $82,571 at the time of writing, down nearly 1% in 24 hours. Ethereum rose against the trend by 1.3% to $1,940, possibly boosted by news of the Pectra upgrade. Other major tokens mostly showed slight declines.In the forex market, the U.S. dollar index continued to weaken, down 0.13%; Russia and Ukraine may reach a temporary ceasefire on energy facilities, causing oil prices to drop nearly 1.00%. Concerns over a U.S. recession, combined with instability in the Middle East, pushed spot gold up over 1.1%, approaching $3,040 and setting a new historical high.The market is focused on tonight's Federal Reserve monetary policy decision. Although it is widely expected that interest rates will remain unchanged, investors are still looking for insights into policymakers' assessments of the potential impact of the tariff war through the "dot plot" and Powell's remarks at the press conference, as well as clues about when the Fed might cut rates again.
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