Yesterday, affected by the rise of U.S. stocks, the overall crypto market also saw a rebound. Bitcoin broke through 60,000 U.S. dollars, reaching a high of 60,500 U.S. dollars, and Ethereum also returned to 2,400 U.S. dollars.
Altcoins as a whole also saw a wave of general price increases, with CKB performing the strongest, rising by more than 50%.
Why did CKB rise so sharply?
This surge in CKB may be due to its listing on South Korea’s Upbit exchange.
Yesterday, CKB saw a sharp rise in price after it was listed on the Korean exchange. The price of CKB even saw a price difference of more than double between Binance and Upbit exchanges.
This shows that the imbalance between demand and supply of CKB in different exchanges has led to drastic price fluctuations.
The news worth noting is:
1. Cut interest rates by 25 basis points or 50 basis points? The Fed faces a dilemma
Recently, the market has fluctuated due to the news of the Federal Reserve's interest rate cut.
Originally, it was generally believed that the Fed would cut interest rates by 25 basis points, but now there are rumors that the Fed may cut interest rates by 50 basis points.
That is to say, the probability of a 25 basis point or 50 basis point rate cut is almost 50-50.
Nick Timiraos, a spokesperson for the Federal Reserve, also published an article discussing the possibility of a 25 basis point and 50 basis point rate cut, which shows that the Federal Reserve is indeed seriously considering the option of a 50 basis point rate cut.
If the Fed chooses to cut interest rates by 25 basis points in September, the market reaction may be relatively calm.
Because this is a widely expected outcome in the market, investors are mentally prepared and the price of Bitcoin may rise slightly.
But if the Fed chooses to cut rates by 50 basis points, the situation will be much more complicated.
While rate cuts are generally good news for markets, a cut of this magnitude could make investors worry about more serious problems in the economy, such as a recession.
As a result, there could be a panic in the market, causing the price of Bitcoin to fall.
Why a 50 basis point rate cut could cause panic
Because a 50 basis point rate cut is relatively large, it usually means that the Federal Reserve believes that the economic situation is very bad and that more radical measures must be taken to stimulate the economy.
This will cause investors to worry about the increased risk of recession, triggering market panic.
Therefore, the speech by Federal Reserve Chairman Powell after the announcement of the interest rate cut is very critical.
If he can explain the reason for the 50 basis point rate cut and convince the market that it is to prevent larger economic problems, then market sentiment may gradually recover and Bitcoin prices may also rise.
But if his explanation is not convincing enough, market panic may continue, causing Bitcoin prices to fall further.
The market currently generally expects the Federal Reserve to cut interest rates by 25 basis points.
According to CME data, the probability of a 25 basis point rate cut is 56%, while the probability of a 50 basis point cut is 44%.
2. MicroStrategy bought 18,300 Bitcoins for $1.11 billion
Recently, MicroStrategy spent another $1.11 billion to buy 18,300 bitcoins. Now, they hold more than 244,800 bitcoins in total.
This suggests that more and more Bitcoin is being bought up by long-term holders and high-net-worth investors.
Long-term holders will not easily sell Bitcoin because of short-term price fluctuations, but will focus more on its long-term appreciation potential.
In other words, they believe that Bitcoin will be more valuable in the future, so they would rather buy it now and hold it for the long term.
3. The SEC recently stated that not all cryptocurrencies are considered securities
The U.S. SEC recently stated that not all cryptocurrencies are considered securities.
Cryptocurrencies are only considered securities in certain circumstances, such as when they are sold in a manner similar to securities.
The SEC's attitude has changed from "you are a security" to "your sales method may be a securities behavior", which has greatly reduced the regulatory pressure on cryptocurrencies. This is good news for the cryptocurrency market in the long run.
4. Binance launched two TON ecosystem projects, CATI and HSMTR
Binance has recently launched two TON ecosystem projects, namely CATI and HSMTR.
The CATI project will start mining on September 16. This project does not have the "Super Earn Coin" function.
The HSMTR project will start mining on September 23. This project has a "super coin earning" function.
It’s just right that you can dig “Phoenix Chick” after digging “Wolong”!
From Binance's layout on the TON ecosystem, we can see that they are very optimistic about this track. With Binance's support, the TON ecosystem may attract more market attention and funds.
In the most recent episode, I shared with you the long-term advantages of the TON ecosystem. Those who are interested can revisit this episode.
Overall, affected by the rise of U.S. stocks, the crypto market has also ushered in a wave of rebound.
Currently, CATI and HSMTR of the TON ecosystem have attracted a lot of funds and attention from the market. You can pay attention to their subsequent performance.
Next, we can focus on the Federal Reserve’s interest rate meeting on September 18. The Fed’s interest rate cut rhythm will have a great impact on the short-term trend of the market.
