The Federal Reserve's interest rate decision will be announced at 2 a.m. this Thursday, followed by the Bank of Japan's interest rate decision on Friday. These macroeconomic policy adjustments often have a significant impact on the overall market trend, so investors need to remain highly vigilant when conducting trading operations.
At present, after a five-month adjustment, the 4-hour upward trend of Bitcoin is gradually emerging. If there is no major negative news, Bitcoin is expected to continue to climb slowly. The next key point is $62,500, which corresponds to the 120-day moving average at the daily level. If Bitcoin can effectively stand above this level, the upward trend at the daily level may be further confirmed, and the market may usher in a new round of rising prices.
The Fed's policies play an important role in guiding the global market. Nick's recent article suggests that the Fed may be inclined to cut interest rates by 50 basis points. However, from the current economic environment and market sentiment, I think a 25 basis point rate cut is more reasonable. This smaller rate cut can not only reduce market divergence, but also effectively reduce excessive concerns caused by expectations of a recession. A large rate cut may make the market uneasy, leading to increased volatility in risky assets and capital outflows.
Usually, interest rate cuts are a gradual process, and although it helps improve market liquidity, the reaction of the capital market is often more significant in the later stages of the interest rate cut cycle. In the early stages of interest rate cuts, a small adjustment of 25 basis points can help maintain market stability and provide support for the steady development of the economy. Therefore, in the current economic environment, milder interest rate cuts may be a more appropriate option.
In the cryptocurrency market, the data on fund flows also showed a positive trend. On September 17, the net inflow of funds into the US Bitcoin spot ETF reached $186 million, showing the strong demand for Bitcoin in the market; in contrast, the Ethereum spot ETF had a net outflow of $15.11 million, reflecting that investors' interest in Bitcoin in the short term was more focused. In addition, as of September 16, the holdings of Bitcoin exchanges fell to the lowest level since November 2018. Since the beginning of this year, the Bitcoin reserves of exchanges have decreased by about 430,000, which means that the market is more inclined to hold Bitcoin for the long term, the selling pressure has eased, and investor confidence has gradually increased. This long-term holding trend lays the foundation for a future market rebound.
Potential altcoins worth watching
1.PEOPLE
The PEOPLE token was indeed closely associated with the plan to bid for a copy of the U.S. Constitution. Although the bid was ultimately unsuccessful, this did not diminish its market attention. The PEOPLE token has since become one of the important representatives of the concept of decentralized autonomous organizations (DAOs). With the popularization of the DAO concept and the increase in community-driven projects, the long-term value of PEOPLE is expected to rise.
Due to the close connection between PEOPLE tokens and ETH, and its relatively small market value, it is more likely to see large gains in market fluctuations. In recent market fluctuations, PEOPLE can often rise rapidly by more than 10%. Considering that it belongs to the US election sector, as the election approaches, the hype may continue until the end of the election in November. This theme's connection with the election cycle increases its short-term speculation, especially at the current market value of $400 million. PEOPLE has good cost-effectiveness and potential room for growth.
When investing or trading, it is important to pay attention to the development of market sentiment and hot topics, especially with the election approaching, the PEOPLE token may experience more volatility.
2.BNB
As the core of the Binance ecosystem, Binance Coin (BNB) does occupy an important position in the cryptocurrency field. Its strong practicality and wide application make it a key asset in the market, especially with the widespread use of Binance Smart Chain (BSC) and Binance Exchange, the demand for BNB continues to grow.
Recent market performance also proves the stability and potential of BNB. In the past week, BNB rose slightly, reflecting its relatively mild price fluctuations, especially in the current market environment. The monthly increase reached 4%, showing a steady appreciation trend.
What is more noteworthy is that BNB reached a record high of $720 three months ago. Although it has experienced adjustments since then, its overall performance remains strong. This shows that BNB is not only one of the top choices for short-term traders, but also one of the altcoins favored by long-term investors. With the continued development of the Binance platform, BNB's future potential and room for growth are still optimistic in the market, especially in the next bull market cycle, BNB is expected to hit new highs again.
In summary, BNB still has great room for growth and investment value in the future due to its core role in the Binance ecosystem and market recognition.
3.BONK
BONK is a memecoin on the Solana blockchain with a Shiba Inu as its mascot. It was originally intended to change the dynamics of the Solana community by shifting power from venture capital tokens to the broader community. As a memecoin, BONK has attracted a lot of community attention, especially those who seek decentralization and fairer distribution.
BONK’s integration into the Solana ecosystem has helped boost its popularity, especially with the planned launch of the decentralized exchange BonkSwap, further boosting its market position. While it faces similar challenges to other memecoins, such as market volatility and competitive pressure, its role in the Solana network and its decentralization goals have made it popular in the community.
The development of BONK also shows that although memecoins are known for their entertainment, they can also be successful on a larger scale by combining with mainstream blockchain technology and adding practical application scenarios. In the future, BONK’s continued popularity depends on the further development and innovation of its ecosystem.
