ChainCatcher news, according to The Block, analysts expect the Federal Reserve to cut interest rates by 25 basis points at the Federal Open Market Committee meeting on Wednesday. While lower rates typically boost risk assets like Bitcoin, comments and economic forecasts from the Fed during Wednesday's meeting may dampen expectations for further rate cuts amid ongoing inflation concerns.Recent U.S. CPI and PPI data have raised worries about potential price pressures next year, especially considering speculation around the economic policies of U.S. President-elect Donald Trump. Furthermore, although macroeconomic events still hold influence, QCP Capital analysts believe that Bitcoin's recent rise is primarily driven by market sentiment.

ChainCatcher news, the Governor of the Bank of France, Villeroy, stated that Bitcoin is still a high-risk asset.

ChainCatcher news, according to 4E monitoring, on Wednesday, the three major U.S. stock indices fell, influenced by weak stock prices of Apple and Nvidia. Investors sold off technology stocks, chip stocks, and AI concept stocks, dragging the Nasdaq down by 1.60%, leading the decline, while the Dow and S&P both fell about 1% and have declined for three consecutive days. The cryptocurrency market followed the general downturn of U.S. stocks, with Bitcoin briefly approaching $65,000. As of the time of writing, Bitcoin is at $67,300, up 0.36%, while Ethereum is at $2,550, down 2.43%.In the foreign exchange and commodity markets, as the election approaches, investors are weighing the possibility of a significant victory for Trump, which is considered the most favorable outcome for the dollar. The dollar index rose over 0.3% to near a three-month high, with the yen, euro, and pound all declining. Spot gold approached $2,760 during the session, setting a historical high for five consecutive days. Subsequently, the dollar and U.S. Treasury yields rose together, putting pressure on precious metals, turning gains into losses. Spot gold fell 1.2% at the close, while spot silver briefly dropped 4%, departing from its twelve-year high. Last week, the EIA crude oil inventory increase exceeded expectations, putting pressure on oil prices, with U.S. oil falling over 1.3%, ending a two-day rise.The Federal Reserve's Beige Book released on Wednesday showed little change in U.S. economic activity, with an increase in hiring by businesses and continued easing of inflationary pressures. With a series of strong economic data released recently, expectations for Fed rate cuts have weakened, coupled with "Trumpflation" prompting the market to reconsider rate cut expectations, especially for next year, leading to a sustained rise in the dollar and U.S. Treasury yields, which pressured risk assets. The stock market, commodities, cryptocurrencies, and non-U.S. currencies were generally under pressure. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, commodity gold, and foreign exchange. It recently launched a USDT stablecoin financial product with an annualized yield of 5.5%, providing investors with a potential hedging option. 4E reminds you to pay attention to market volatility risks and to allocate assets reasonably.

ChainCatcher news, QCP Capital stated that the Chinese stock market continued to decline today, with the China A50 index dropping another 7%, down 17% from recent highs. The lack of fiscal stimulus has severely impacted investor sentiment. However, the U.S. stock market has not been affected by developments in Asia. Despite uncertainties surrounding the U.S. elections and the exclusion of interest rate cuts in 2024 following the non-farm payroll report, the U.S. stock market continues to rise to new highs. The bond market currently expects two rate cuts in 2024, down from three just a week ago.Despite the escalating turmoil in the Middle East and domestic challenges related to the U.S. elections, the U.S. stock market continues to steadily climb, reaffirming the view that risk assets are poised for a rebound. In the cryptocurrency market, the Meme coin sector has surged with increased on-chain and off-chain trading activity. Traders are heavily speculating and leveraging the latest popular Meme coins, leading to some bubbles in the market.In the past two weeks, the perpetual contract funding rates on exchanges like Deribit and Binance have also risen, indicating that short positions are decreasing or long positions are increasing. This, along with the bubble in the Meme coin market, keeps it vigilant for potential downturns, as such situations often occur when the market is bullish and investors are least guarded. Even in the face of short-term uncertainties and declines, we still plan to continue accumulating, with a bullish mid-term outlook.

ChainCatcher news, according to The Block, FalconX research director David Lawant stated that the correlation between cryptocurrency prices and broader risk asset indices has been rising and may remain high for some time. The current lower interest rate cycle combined with a soft landing is the baseline for most investors and will create a new macro environment for cryptocurrencies. Favorable election outcomes and a liquidity environment more conducive to risk assets may trigger the next cryptocurrency bull market.

ChainCatcher news, according to Coindesk, 10x Research believes that if the Federal Reserve cuts interest rates by 50 basis points (bps) on September 18, the originally bullish liquidity easing cycle may have adverse effects on risk assets, including cryptocurrencies.It is reported that a 50 basis point adjustment typically indicates an urgency to control inflation and triggers a risk-averse sentiment in financial markets. A 50 basis point rate cut next week may signal heightened concerns about the economy or a feeling of lagging in addressing the impending economic slowdown, leading investors to reduce their exposure to risk assets like Bitcoin (BTC) and stocks.Markus Thielen, founder of 10x Research, stated: "While a 50 basis point rate cut by the Federal Reserve may indicate greater market concerns, the Fed's primary focus will be on mitigating economic risks rather than managing market reactions."

ChainCatcher news, FxPro senior market analyst Alex Kuptsikevich stated that the weakness in Bitcoin may signal warnings for traditional risk assets. He said: "The weakness in cryptocurrencies may reflect a very limited risk appetite, and the rest of the market may soon follow the cryptocurrency's lead. Bitcoin has fallen for the 9th consecutive day in the past 11 days as it attempts to consolidate above the 200-day moving average, triggering strong sell-offs. This pattern has persisted until Thursday morning, as prices continue to test the lows of the past four months, and Bitcoin may struggle to gain lasting strength from the recent weakness of the dollar index."

ChainCatcher news, Singaporean crypto investment firm QCP Capital stated that the downward revision of the U.S. non-farm payrolls overnight highlighted the weakness in the labor market, raising concerns that the Federal Reserve might delay interest rate cuts, triggering a wave of selling.However, the minutes from the July Federal Open Market Committee (FOMC) meeting showed that some policymakers were willing to cut rates, which released a more dovish stance aimed at balancing inflation and employment goals, thereby alleviating these concerns. This dovish tone boosted risk assets, pushing Bitcoin prices above $61,800, with strong buying on Coinbase continuing until 4 AM Singapore time. Aggressive buy orders on Coinbase (indicating domestic demand in the U.S.) are a good signal for the short-term trend.Now, the market's focus shifts to Federal Reserve Chairman Powell's speech tomorrow in Jackson Hole, with expectations of gaining more signals regarding interest rate cuts. Given that the market is generally betting on rate cuts, unexpected economic data could have a significant impact on the market.

ChainCatcher news, 10x Research stated in its latest analysis that Bitcoin has risen by 4% since yesterday, consistent with its bullish outlook. Bitcoin made a decisive upward move, breaking through the symmetrical triangle pattern, indicating potential for further upside.With the support of an increase of $1 billion in open interest, Bitcoin's funding rate has returned to a premium. Considering these dynamics, a straightforward strategy is to go long on Bitcoin while shorting Ethereum, as Bitcoin's dominance continues to rise, with its share of open positions increasingly deviating in favor of Bitcoin. The Federal Reserve's meeting minutes were as expected, with a strong focus on the employment aspect of its dual mandate.According to current economic data forecasts, the inflation target seems within reach. "The vast majority" of FOMC members support a rate cut in September, with several members even considering a rate cut in July as a viable option. This makes a rate cut in September almost inevitable. Powell's upcoming speech on Friday is expected to reinforce this dovish outlook, potentially boosting risk assets like stocks and Bitcoin, as monetary policy provides a favorable backdrop. The Federal Reserve's focus in decision-making is shifting towards employment, making inflation data less significant, especially with CPI trending towards 2.5% in the coming months. Multiple rate cuts may be needed to sustain the current economic expansion.

ChainCatcher message, Glassnode co-founder Negentropic stated on X: "After the release of yesterday's CPI and retail sales data, the Dollar Index (DXY) was severely impacted. According to the EW-count, this looks like the 'right shoulder' of a major head and shoulders pattern. More downside potential will fuel the rebound of risk assets BTC and SP500 until the end of summer."

ChainCatcher news, QCP Capital stated that the U.S. CPI data triggered a breakthrough in risk assets, with BTC prices rising above $66,000. They expect this momentum could push prices back to the $74,000 high.In addition, they noted that institutional demand continues to grow, with large asset management firms Millenium and Schonfeld investing 3% and 2% of their assets under management into BTC spot ETFs, respectively. With significant adoption by sovereign and institutional investors, easing inflation, and the upcoming U.S. elections, this breakthrough may signal the return of a bull market.

ChainCatcher news, October's US CPI did not meet market expectations. Specifically, the CPI month-on-month is 0%, below the market expectation of 0.1%; the core CPI month-on-month is 0.2%, below the market expectation of 0.3%; the CPI year-on-year rose by 3.2%, below the market expectation of 3.3%; the core CPI year-on-year is 4.0%, below the market expectation of 4.1%.With the CPI data declining and the US economy beginning to show signs of weakness, the market expects a shift in the Federal Reserve's monetary policy, anticipating an early end to the tightening of monetary policy. According to CME data, the probability of a 25 basis point rate hike by the Federal Reserve in December has dropped to 0.2%. By December next year, the market expects the federal funds rate to fall to a range of 4.25%-4.5%. The market anticipates that by December next year, the Federal Reserve will cut rates by 100 basis points.The macro monetary policy environment of rate cuts means that more funds will be available in the market in the future, which is a significant boon for risk assets. It is expected that the supply of stablecoins in the cryptocurrency market will surpass previous highs.

ChainCatcher news, BitMEX founder Arthur Hayes stated on social media, "Since the beginning of November, as the reverse repurchase (RRP) balance held by the New York Fed has decreased while the U.S. Treasury General Account (TGA) balance has remained unchanged, nearly $200 billion in liquidity has been injected (into the market). Risk assets such as Bitcoin and other cryptocurrencies will continue to soar."