There were two major events yesterday that made investors in the market panic.
1. One is that the PPI (Producer Price Index) is higher than everyone expected, which is usually not good news;
2. The other is that Fed Chairman Powell said that they do not plan to raise interest rates now, nor will they cut interest rates soon. This is equivalent to saying nothing, making the market more uncertain. As a result, those who like to do short-term trading are really troubled.
Although the entire market is a bit volatile, the decline of Bitcoin is not too severe. However, those smaller cryptocurrencies are miserable and have fallen sharply.
The general trend of Bitcoin is still rising. Although it did not rush very high at once, it did not fall down. However, it is now in a range of fluctuations, so the CPI data to be released tonight is very important.
When it comes to the holding of Bitcoin, nearly half of the total amount is held by institutions. But here I have to say that not nearly half of the institutions hold Bitcoin. In fact, only a few large investment banks hold it, and they may still hold it for their clients.
For example, JPMorgan Chase manages $1.16 trillion in investments, but only bought $760,000 of Bitcoin spot ETFs, which is less than one ten-thousandth of their total assets.
