Today we take a look at what major events happened in the crypto market this week.
The crypto market has seen a strong rebound in the past two days, with Bitcoin breaking through $65,000 and Ethereum reaching a high of $2,700.
Altcoins as a whole also ushered in a wave of general price increases, among which the MEME coin sector performed the strongest, with PEPE, SHIB, and BONK all rising by more than 15%.
Market sentiment also improved, with the Fear & Greed Index reaching 61, a nearly two-month high.
Although the price of Bitcoin is rising, the transaction volume on the chain is not high. This increase is likely due to low market liquidity.
The turnover rate in the last 24 hours has almost halved, retail investor sentiment has improved, and purchasing power has clearly increased.
Many investors began to sell cautiously, expecting higher prices, while early investors remained on the sidelines.
Subsequent changes in Bitcoin prices will mainly depend on whether short-term holders are willing to sell their chips.
Next, let’s take a look at the important news that deserve attention:
1. U.S. Treasury Secretary Yellen said the Fed may cut interest rates further
She believes that banks have ample liquidity and that labor market and inflation data indicate that the United States has the potential to achieve a soft landing, meaning that the economy will not suddenly fall into recession.
Her speech conveyed two important messages: First, the US economic situation is still good and the possibility of recession is decreasing.
Secondly, although the labor market looks stable, it is still relatively fragile, so the Fed needs to continue to cut interest rates to prevent economic problems. All of this information sends a positive signal to the outside world.
After a sharp 50 basis point rate cut in September, the Federal Reserve plans to continue to gradually reduce interest rates.
According to CME's "Fed Watch", the probability of the Federal Reserve cutting interest rates by 25 basis points by November is 40.8%, and the probability of cutting interest rates by 50 basis points is 59.2%.
2. Bitcoin spot ETF had a net inflow of $366 million yesterday, maintaining a net inflow for 6 consecutive days
Ethereum spot ETF also performed well, with a net inflow of $43.2341 million.
BlackRock's investors became active again after a few days of inactivity, showing strong buying power, which may be related to BlackRock's new advertising.
Currently, the United States' Bitcoin holdings have reached 83% of Satoshi Nakamoto's holdings.
Bloomberg analyst Eric Balchunas pointed out that the inflow of funds into the U.S. Bitcoin ETF has reached US$17.8 billion since the beginning of the year, a record high.
The U.S. Bitcoin ETF's holdings have achieved 92% of its target of 1 million Bitcoins.
3. Standard Chartered Bank predicts that no matter who wins this year's US election, Bitcoin is expected to hit a record high by the end of 2024
Standard Chartered Bank analysts predict that if Trump is elected, Bitcoin could soar to $125,000; and if Harris is elected, Bitcoin is expected to rise to $75,000.
Trump has been against cryptocurrencies in the past, but now he not only publicly supports them, but also calls himself the "Crypto President."
At the Bitcoin 2024 conference in July this year, Trump said that if he wins the election, he will list Bitcoin as a strategic reserve asset of the United States and plans to repeal federal encryption regulations while replacing the current chairman of the U.S. Securities and Exchange Commission, Gary Gensler.
Although Harris is not as high-profile in supporting Bitcoin as Trump, analyst Kendrick believes that her attitude towards cryptocurrencies may be more open than some people expect.
For example, Biden had retained a bill that would have prevented banks from providing custody of digital assets, while Harris could have changed that policy.
“If Harris wins, the market will realize that regulatory changes are likely under her leadership, and Bitcoin will move higher after an initial decline,” he said in the report.
According to data from the prediction website Polymarket, Trump's probability of winning is 49% and Harris's probability of winning is 50%. The competition between the two sides is currently very fierce.
Additionally, analysts at Bernstein predict that Bitcoin could surge after Trump's victory as the market has yet to price in a potentially relaxed regulatory environment.
Kendrick also cited other positive factors for Bitcoin in the coming months, such as Bitcoin could benefit from a renewed rise in U.S. Treasury yields and a resumption of Bitcoin ETF inflows.
Kendrick maintains that by the end of next year, the price of Bitcoin will reach $200,000, regardless of who is elected president.
4. CZ will be released early this Friday
According to Fortune, CZ will be released early this Friday, two days earlier than originally scheduled.
This is because prisoners often leave detention centers early if their release date falls on a weekend, which is also good news for the market.
Binance recently launched pre-market trading, allowing users to sell tokens while mining, thus avoiding concentrated selling at the opening, thereby stabilizing the price at a level that everyone can accept.
In this way, there will no longer be the embarrassing situation where the price reaches the highest point at the opening, and the price will be more stable.
Otherwise, in the long run, investors may lose interest in Binance's new coins, resulting in a situation where no one is willing to buy them when they open.
Overall, the recent Fed rate cut has triggered a strong rebound in the crypto market, with improved market sentiment and greater investor confidence.
We have passed the most difficult times and we can look forward to the performance of Bitcoin in the fourth quarter.
