Last night, the U.S. stock market suddenly turned from falling to rising, and the hero of all this was Nvidia's CEO Jensen Huang.
He said at a meeting: The demand for Nvidia's new generation of AI chips is so great that supply is insufficient to meet demand, even causing tension in customer relations.
It was this sentence that directly caused Nvidia's stock price to turn from falling to rising, and eventually increased by 8%.
Not only that, Nvidia's rise also led to a rebound in the entire US stock market.
Affected by this, the crypto market also ushered in a wave of rebound, Bitcoin returned to US$58,000, and Ethereum fluctuated around US$2,400.
This shows that the current market sentiment is very sensitive. Investors are paying close attention to the movements of these companies, and any slight disturbance will cause drastic fluctuations in the market.
The news worth noting is:
1. After the release of the US CPI: The probability of the Federal Reserve cutting interest rates by 25 basis points in September has risen to 85%
Yesterday, the United States released the core CPI data for August, which showed an annual growth rate of 3.2%, the same as last month's data, in line with market expectations.
So what does this have to do with rate cuts?
Simply put, CPI data is an important indicator for measuring inflation. If inflation falls, the Federal Reserve will have more room to cut interest rates.
According to the latest forecasts, the probability of the Federal Reserve cutting interest rates by 25 basis points in September has risen to 85%, while the probability of cutting interest rates by 50 basis points is 15%.
This means that after the release of the CPI data, the market's expectations for the Fed's interest rate cut in September have become clearer, especially the possibility of a 25 basis point cut has increased significantly.
The Fed is likely to take a more modest approach to rate cuts rather than a large one-time reduction.
The Federal Reserve wants to achieve a soft landing for the U.S. economy, so they will address inflation first and then focus on economic growth and employment.
If the US economic growth continues to be good in the next few months, it means that the economy is likely to achieve a soft landing.
In this case, the market may start to rise ahead of schedule in the last quarter of this year, which is in line with the "bullish" expectations after October.
2. Will the UK treat Bitcoin as personal property?
Recently, the British government proposed an important bill, intending to officially classify crypto assets such as Bitcoin and NFT as personal property.
This means that digital assets like Bitcoin will be protected by law just like your house or car.
Currently, UK law divides personal property into two categories:
One category is things you can actually own, such as mobile phones and cars;
The other category is things that you cannot directly "hold in your hands", such as debts and stocks.
The new bill will create a third category of personal property specifically to cover digital assets such as Bitcoin and NFTs.
Once the bill is passed, the UK will become one of the few countries in the world that explicitly recognizes crypto assets as personal property, which is a long-term positive for the crypto market.
3. What is the popular Cat Protocol on Fractal Bitcoin?
Recently, the Fractal Bitcoin project in the Bitcoin ecosystem has become very popular.
So what is Fractal Bitcoin?
Simply put, it is a Bitcoin-based expansion project that aims to enable the Bitcoin network to process more transactions while keeping the speed fast and the fees low.
Currently, the transaction fees for this project are very high, indicating that it has attracted a lot of funds and attention.
These days I am also doing a special program about Fractal Bitcoin, which will be released on Bilibili and YouTube tomorrow. Friends who are interested can pay attention to it.
Another popular project is the CAT Protocol, a new asset issuance protocol that allows users to create and issue assets on the Bitcoin network.
CAT Protocol is also a relatively promising project, which brings new application scenarios and opportunities to the Bitcoin network.
Although the CAT protocol is very popular, it is still in its early stages and has not been fully verified by the market. Whether it will be successful in the future is still uncertain. We can first establish a basic understanding of it.
Overall, influenced by the U.S. stock market, the crypto market has also seen a rebound.
After the CPI data is released, the Federal Reserve is likely to cut interest rates by 25 basis points in September.
We can focus on the dot plot released by the Federal Reserve at the interest rate meeting on September 18. The Fed’s subsequent interest rate cut pace will have a great impact on the market.
