On Wednesday, US data showed that the GDP for the third quarter was 2.8%, below the expected 3% and lower than the previous value of 3%. The core PCE price index for the third quarter rose to 2.2%, above the expected 2.1% but lower than the previous value of 2.8%. In October, ADP employment numbers reported 233,000 jobs, higher than the expected 114,000, and the previous value was revised from 143,000 to 159,000. The increase in the core PCE price index of 2.2% for the third quarter roughly aligns with the Federal Reserve's target, potentially supporting monetary easing policies. The NASDAQ hit a new intraday high of 18,785 points, and gold prices reached a new high of $2,789 per ounce.
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Elon Musk's AI startup xAI is in talks with investors for a funding round that will yield a valuation of around $40 billion. A few months ago, xAI's last valuation was $24 billion, when it raised $6 billion in the spring. xAI hopes to raise several billion dollars in this new funding round. Musk stated plans to double the size of the AI startup xAI. Florida's Chief Financial Officer Jimmy Patronis expressed hopes that agencies managing the state's retirement funds consider BTC, becoming the third state to invest retirement funds in BTC. In May, the Wisconsin Investment Board invested $164 million in Grayscale and BlackRock's spot BTC ETFs, where cryptocurrency assets accounted for about 0.1% of its total managed assets. In July, Michigan's retirement system also disclosed its investment in BTC, holding 110,000 shares of ARK21Shares ETF, which represents 0.003% of its managed assets. Analysts at financial services firm Presto stated that as Trump's lead over Harris expands on Polymarket, it increases the likelihood that crypto-related bills will pass in Congress. Among the 50-plus proposed crypto bills, six (including the crypto market structure bill FIT21 aimed at regulating the entire industry) have been passed by the House and are currently awaiting Senate approval. Cointelegraph reported that BTC reached $73,562; despite a significant recent price increase, Google searches for BTC remain a small fraction of last week's AI traffic.
Compared to late May 2021 (when search volume reached an all-time high), BTC's search interest currently stands at 23 points (out of 100), with BTC's proximity to historical highs still failing to awaken retail investors. Top trader Eugene released a trading summary for October, stating that his short position faced a BTC breakthrough above $70,000, and he has since cleared his position, expecting significant market volatility in the coming two weeks, feeling that both bulls and bears will face severe setbacks, and emphasizing the need for risk management. Matrixport reported that in November 2016, when Trump was first elected, BTC was priced at about $700 and surged significantly during his first year in office. Although a single data point is insufficient to establish a trend, market optimism remains high, and many believe that if Trump is re-elected, there will be regulatory easing, allowing BTC to rise further. Meanwhile, demand for BTC continues to grow, with recent daily purchases of BTC ETFs exceeding $800 million, further reducing the supply of BTC in the market. Bitwise Chief Investment Officer Matt Hougan stated: The US will continue to print dollars excessively, and BTC and gold are both valuable stores of value against inflation. Investment in value-storing assets continues to grow, and combined with the ongoing depreciation of the dollar, will push BTC prices into six figures. Currently, BTC's market capitalization stands at $1.43 trillion, approximately 7-8% of gold's market capitalization of $18 trillion. On Wednesday, US data showed: In October, the ADP employment number was 233,000, exceeding the expected 114,000, and the previous value was revised from 143,000 to 159,000. The core PCE price index for the third quarter was 2.2%, exceeding the expected 2.1% but lower than the previous value of 2.8%.
The US GDP for the third quarter was 2.8%, below the expected 3% and lower than the previous value of 3%. The ADP employment numbers, often referred to as the small non-farm payroll, recorded an increase of 233,000 jobs, marking the largest increase since July 2023; the core PCE price index for the third quarter rose by 2.2%, roughly aligning with the Federal Reserve's target. Although GDP continues to grow in the third quarter, it has slowed under the pressure of high interest rates, which may support monetary easing policies. Bank of America stated that as more than a third of the S&P 500 companies have reported their earnings, the mention of the term 'bottom' in earnings call conferences increased by 56% year-over-year; historically, a surge in mentions of 'bottom' often signals a turning point for earnings per share. The Federal Reserve may continue to cut interest rates, and the uncertainty surrounding the elections will also pass, with indications that the worst may be over. On October 29, the net inflow for the US BTC spot ETF was $870 million, marking the third-highest single-day net inflow in history. The total assets of the spot ETF reached $72.545 billion, accounting for 5.07% of the total market capitalization of BTC, marking the first time it exceeded 5%. Over the past 13 trading days, the net inflow for the BTC spot ETF has reached $4.73 billion, with the BTC price rising from $60,500 to a peak of $73,600. During the same period, ETH's spot ETF saw an inflow of $60.87 million. Bloomberg's senior ETF analyst Eric Balchunas stated that the trading volume of BlackRock's BTC spot ETF IBIT reached $3.3 billion on Tuesday, the highest level in six months, indicating more large inflows are expected this week due to market FOMO sentiment.
On Wednesday, Tether issued an additional $1 billion in stablecoins. Bitfine analysts stated that improved technical indicators, renewed inflows into the spot BTC ETF, and broader macro factors (including speculation about Trump's election and seasonal strength in the fourth quarter market) support the ongoing upward trajectory of BTC. The options market reflects an optimistic outlook, with bullish positioning suggesting BTC prices could rise above $80,000 before the end of the year. After the release of ADP employment, GDP, and PCE price index data on Wednesday, the probability of a 25 basis point rate cut by the Federal Reserve next Thursday fell from 99% to 96.2%, with little impact. The NASDAQ hit a new intraday high of 18,785 points, and gold prices reached a new high of $2,789 per ounce. Yesterday, BlackRock's BTC spot ETF saw inflows of $643 million, bringing the total inflows in January to $24.945 billion; Fidelity's FBTC saw a single-day inflow of $134 million, totaling $10.554 billion so far this January. In the context of anticipated interest rate cuts, asset management giants have chosen to continue increasing their holdings. There is hope that this wave of sustained inflows from traditional institutions will spill over to other cryptocurrencies in November, something that has been awaited for a long time.
