● The Federal Reserve cut interest rates by 50 basis points, starting a cycle of interest rate cuts
According to Jinshi, the Federal Reserve announced the start of a rate cut cycle on September 19, lowering the federal funds rate by 50 basis points to 4.75%-5.00%. This is the first rate cut since March 2020.
● Fed dot plot shows officials are divided on rate cuts in 2024
According to Jinshi, the Federal Reserve's dot plot shows that among the 19 officials, 2 officials believe that there should be no further interest rate cuts in 2024 after this meeting, 7 officials believe that interest rates should be cut by another 25 basis points in 2024, 9 officials believe that interest rates should be cut by another 50 basis points in 2024, and 7 officials believe that interest rates should be cut by another 75 basis points in 2024.
● Fed Chairman Powell: The interest rate path is not fixed and will be decided on a case-by-case basis
According to ChainCatcher, Federal Reserve Chairman Powell said: "We have not set any fixed interest rate path and will make decisions on a meeting-by-meeting basis. If the economy remains robust and inflation remains stubborn, policy adjustments may be made more slowly."
● Citi: The Fed will focus on the weak labor market, unemployment data is the key
According to Jinshi, Jabaz Maathai, head of G10 currency interest rate and foreign exchange strategy at Citi, said that the Fed's shift to a weak labor market means that the number of people applying for unemployment benefits and the unemployment rate will become increasingly prominent. He believes that the market will continue to readjust its expectations for the Fed's interest rate cuts in November and December based on the number of people applying for unemployment benefits. Other indicators focusing on industrial and commercial activities will play a less important role.
● Analyst Ernst: Economic growth and inflation expectations indicate a soft landing scenario
According to Odaily Planet Daily, analyst Ernst pointed out that from the perspective of economic growth and inflation expectations, the description is a completely soft landing scenario. Policymakers expect the median growth rate for this year, next year, and 2026 and 2027 to be 2%. Inflation is expected to basically return to the target level next year - 2.1% by the end of 2025 and 2% in 2026.
According to TechFlow, on September 18, SolanaFloor disclosed that as the altcoin market continued to be sluggish, the proportion of Bitcoin's market value in the overall cryptocurrency market hit a new high. The latest data shows that Bitcoin's market value has accounted for 58.47% of the total cryptocurrency market value, the highest level since April 2021.
● Glassnode: Bitcoin market is in a stagnant period, demand and supply are not active
According to Odaily Planet Daily, blockchain analysis company Glassnode published an article on the X platform stating that the Bitcoin market is currently in a period of stagnation, with both demand and supply showing signs of inactivity. As indicated by the stagnant actual market value, the market is characterized by very little capital inflow and outflow.
● MicroStrategy issues $875 million of convertible senior notes, plans to buy more Bitcoin
According to Foresight News, MicroStrategy announced the issuance of $875 million in aggregate principal amount of 0.625% convertible senior notes due in 2028, with the issuance expected to close on September 19, 2024. MicroStrategy intends to use the net proceeds from the offering to redeem all $500 million in aggregate principal amount outstanding of 6.125% senior secured notes due in 2028, and to use the balance of the net proceeds to purchase additional Bitcoin and for general corporate purposes.
