The Federal Reserve may cut interest rates significantly, and the market outlook may usher in a new dawn
After experiencing significant market fluctuations and corrections, JPMorgan Chase released its latest assessment stating that approximately three-quarters of arbitrage trades globally have completed deleveraging and liquidation operations. This trend significantly indicates that market volatility has begun to gradually stabilizing.
Market sentiment picked up significantly on Thursday. The Nasdaq index rose strongly during the session, with an increase of more than 3%. The S&P 500 index followed closely, recording a significant increase of 2.3%. The price of safe-haven asset gold also performed well. It rose 1.7%, further confirming the rebound in market risk appetite.
Recently, the British FCA issued compliance guidance on cryptocurrency promotion, requiring relevant companies to follow the rules it has formulated. In particular, companies involved in anti-money laundering services need to register.
The Brazilian Securities and Exchange Commission approved the world’s first Solana spot ETF, while BTC ETF holdings in Australia and Hong Kong have grown steadily, showing that institutional interest in crypto assets has not diminished. Genesis Trading distributed large amounts of BTC and ETH to creditors, and the market responded with mixed reactions.
The dust of the Ripple case has settled. The court ruled that some of its institutional sales violated securities laws, but its retail sales were in compliance and the fine was far lower than the SEC's original requirements. Ripple CEO said he respects the ruling and will continue to develop. Japan’s Financial Services Minister is open to cryptocurrency ETFs, but requires careful consideration.
Morgan Stanley in the United States allows its financial advisors to recommend BTC spot ETFs to clients, becoming an important milestone in the crypto field. Institutions were seen as an important support for BTC's rebound after market volatility, while retail investors exacerbated the decline. Analysis points out that BTC’s current decline is mainly affected by the correction of traditional risk assets, but future demand may be stimulated by cash payments from FTX’s bankruptcy.
The rapid fall of the VIX index indicates that U.S. stocks may rise, and the Federal Reserve's potential rapid interest rate cut is also regarded as a positive factor for the market. The U.S. stock market and the crypto market rebounded significantly on Thursday. The market generally believes that the root cause of the decline is the unwinding of arbitrage trades caused by the Bank of Japan raising interest rates and U.S. employment data falling short of expectations.
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