Federal Reserve rate cut: abundant liquidity boosts cryptocurrency asset prices.
Market expectations for a rate cut by the Federal Reserve are rising, with CME data showing a 70.1% probability of a 25 basis point cut in December. A rate cut usually means looser monetary policy, leading to a significant increase in market liquidity. For investors, low interest rates mean reduced returns from traditional investment channels, making riskier assets, such as cryptocurrencies, more attractive. After experiencing the tightening brought by high interest rates, if the U.S. enters a rate-cutting cycle, the purchasing power of the dollar may be compressed, making it possible for funds to flow out of the dollar and into non-traditional assets like Bitcoin.
This is undoubtedly a huge positive for Bitcoin and other crypto assets. Bitcoin has traditionally been viewed as an asset against inflation; a rate cut leads to the devaluation of the dollar, further enhancing Bitcoin's safe-haven value. The increased demand for Bitcoin in the market will inevitably drive its price higher. In the current macroeconomic environment, the liquidity brought by rate cuts will push more funds into the cryptocurrency market, boosting the prices of crypto assets like Bitcoin.
Trump appoints David Sacks: the cryptocurrency industry welcomes a spring breeze of policy.
President Trump recently announced the appointment of David O. Sacks as the White House cryptocurrency and artificial intelligence director. Sacks is a well-known investor in Silicon Valley, former COO of PayPal, and a staunch supporter of blockchain technology. He has a strong background in digital currency and blockchain technology. This appointment by Trump signifies a major shift in the U.S. government's attitude towards cryptocurrencies. Sacks will lead the policy and regulatory affairs of the cryptocurrency industry and is committed to establishing a clear legal framework to provide the necessary policy support for the crypto industry.
Sacks' appointment is expected to inject new policy momentum into the cryptocurrency industry. In recent years, the U.S. cryptocurrency industry has been in an environment of policy uncertainty, with the regulatory body's ambiguous attitude leaving many investors and companies confused. The arrival of Sacks signifies that the cryptocurrency industry in the U.S. will welcome clearer policy guidance. Sacks has publicly expressed his support for Bitcoin multiple times, believing it to be an effective tool against the traditional financial system and currency devaluation. Under his leadership, the U.S. is expected to gradually improve the legal framework for cryptocurrencies, providing a better policy environment for the industry and further promoting its development.
Trump's move reflects his emphasis on cryptocurrencies and may accelerate the U.S.'s leadership position in the global cryptocurrency regulatory field. If Sacks can make progress on policy, the future of the cryptocurrency industry will undoubtedly be brighter, especially for crypto enterprises that rely on a clear legal framework—this future will be more hopeful.
Putin mentioned the role of digital currencies in BRICS countries.
Russian President Putin recently discussed the important role of digital currencies in the BRICS investment platform at the 'Russia Calling!' forum. Putin stated that digital currencies will become an important component connecting the investment platforms of BRICS member countries (including Brazil, Russia, India, China, and South Africa). This statement undoubtedly provides further support for the cryptocurrency industry, especially as multiple countries and regions globally gradually increase their recognition of digital currencies. Putin also mentioned that Russia's digital ruble pilot has covered 9,000 citizens and 1,200 enterprises, with plans for a full rollout in 2025.
This move not only promotes the application of digital currencies in Russia but also provides strong support for the global cryptocurrency industry's development. As BRICS countries deepen their cooperation in the digital currency field, the scale and influence of the global digital currency market will further expand. This also means that the global recognition of mainstream cryptocurrencies like Bitcoin will be further enhanced.
Bitcoin's market value breaks new high: market confidence rebounds.
Against the backdrop of the market gradually warming up, Bitcoin's market value has also reached a new breakthrough. Currently, Bitcoin's market value is close to $2 trillion, surpassing several countries' government bond markets and approaching the total market value of the UK's FTSE 100 index. The value of Bitcoin as a digital asset is increasingly recognized by the global market, and its market value increase proves that cryptocurrencies' status in the global financial system is continually rising.
Especially against the backdrop of institutional investors pouring in, the market demand for Bitcoin continues to grow. For example, Standard Chartered's recent report indicated that Bitcoin's price could surpass $200,000 by the end of 2025, showcasing the confidence institutions have in Bitcoin. If this trend continues, Bitcoin's market share and price are expected to rise further.
El Salvador's Bitcoin investment strategy.
Additionally, the Salvadoran government's daily investment plan also demonstrates the unique appeal of Bitcoin as an asset. According to Arkham data, the Salvadoran government is currently investing in 1 Bitcoin daily, with a total holding exceeding 5,955 coins, making the Bitcoin market value reach $614 million. This move by El Salvador showcases the country's long-term confidence in Bitcoin and provides a successful case for other governments and investors.
The U.S. spot Ethereum ETF saw a net inflow of 111,600 coins yesterday, valued at $429 million.
The U.S. spot Bitcoin ETF saw a net inflow of 7,579 coins yesterday, valued at $748 million.
BTC: Bitcoin closed a 'high waves line' yesterday, which is truly a 'roller coaster' for the market! The price battle around $100,000 is incredibly fierce, but this is also a reflection of the healthy operation of the market. Looking back at the recent trends, we see that Bitcoin has completed a relatively rational deleveraging process, and the long shadows provide a solid foundation for future increases.
The recent price correction can be said to have ended, and the current slight correction trend seems to have concluded; it is highly likely to recover and rise again soon. Although Bitcoin has seen a decline, altcoins have not experienced panic selling, and market sentiment remains stable.
Overall, the unemployment rate and non-farm employment data for November, to be announced tonight, may bring some fluctuations to the short-term market trend, but this does not affect our view on the mid to long term. For players, there is no need to worry about short-term fluctuations; patience in holding positions is key. The healthy recovery and stability of the market indicate that we are in a relatively positive cycle.
ETH: Ethereum closed a spinning top yesterday, currently above the 5-day moving average, and is expected to continue rising along the 5-day and 10-day moving averages. The exchange rate has strengthened, and the expectation for further gains is quite strong!
Today's Fear and Greed Index: 72 (Greed)#比特币回升至97K
