Federal Reserve's dilemma under inflation data
On Wednesday, the U.S. Core PCE Price Index for October rose 2.8% year-on-year, matching expectations but exceeding the Federal Reserve's target. Crescat Capital macro strategist warns that a second wave of inflation risk may be brewing, putting the Federal Reserve in a dilemma: raising interest rates increases government debt, while delaying it risks uncontrolled inflation.
Market divergence with stocks falling and cryptocurrencies rising
Inflation pressures and the uncertainty of Federal Reserve policy are making traditional financial markets cautious, with the three major U.S. stock indices all falling: S&P, Dow, and Nasdaq declined by 0.42%, 0.30%, and 0.66% respectively. Conversely, the cryptocurrency market remains resilient, with Bitcoin breaking $97,000 and Ethereum rising over 10% to reach a several-month high, while the top 200 tokens saw a broad increase, bringing the total cryptocurrency market capitalization to $3.34 trillion, with Bitcoin's market share at 57.1%.
Changes in fund flows and altcoin outlook
Coinglass data shows the inflow of funds into Ethereum ETFs, in stark contrast to the outflow from Bitcoin ETFs. QCP Capital analysts state that funds are shifting from Bitcoin to Ethereum and altcoins, driven by the performance of the Ethereum ecosystem and the derivatives market.
Although the market is optimistic about the altcoin season, the founder of CryptoQuant believes that due to a lack of new retail capital or delays, altcoins need to independently attract new capital, and he remains 'optimistic' about altcoins.
