The cryptocurrency market surges across the board! Bitcoin price surpasses $87,000

On the morning of November 24 Beijing time, the cryptocurrency market surged across the board. The price of Bitcoin rose above $87,000, with a 24-hour increase of more than 2%. Ethereum was up more than 1%, Dogecoin was up more than 3%, and XRP was up more than 4%.

Image source: CoinGlass screenshot

According to CoinGlass data, in the past 24 hours, more than 110,000 traders were liquidated in the cryptocurrency market.

In recent times, volatility in the cryptocurrency market has increased. Since the beginning of this year, Bitcoin has once risen to above $126,000, but recently it pulled back to around $80,000. The pullback was substantial. According to Beijing Business Today, industry insiders believe that the volatility of crypto assets far exceeds that of traditional assets, and in the short term investors should pay attention to the effectiveness of the $80,000 support level. If the $80,000 support level can hold effectively, the market may see a certain degree of rebound, but the rebound’s strength and sustainability remain uncertain, because multiple adverse factors currently facing the market have not been fully eliminated. If the $80,000 support level is breached effectively to the downside, the price of Bitcoin may further fall to search for new support areas. Investors need to assess risks rationally and plan cautiously.

On the news front, as of now, ahead of possible rate cuts in December, divisions within the Federal Reserve have increased.

According to media reports, local time on November 21, the Federal Reserve’s “third-in-command,” New York Fed President Williamms, delivered “dovish” remarks. He said that, with the downward risks to the labor market having already strengthened and upward risks to inflation having eased, the Federal Reserve still has room for further rate cuts in the near term. Triggered by these “dovish” remarks, traders’ bets on a December rate cut by the Federal Reserve have clearly heated up. According to the CME FedWatch tool, after Williams’ remarks on Friday, traders in the federal funds futures market sharply increased their probability expectations for a December rate cut to about 70%, nearly double from the less than 40% figure one day earlier.

In addition, Federal Reserve Governor Milan said that if her vote were to become the deciding one, she would support a 25 basis point rate cut. She also noted that labor market data had not met the expected strength.

Bolstered by the “dovish” remarks, on local time November 21, all three major U.S. stock indices closed higher. The Dow rose 1.08%, the S&P 500 rose 0.98%, and the Nasdaq rose 0.88%. However, for the entire week, the Dow fell 1.91%, the S&P 500 fell 1.95%, and the Nasdaq fell 2.74%.

But on local time November 22, Susan Collins, the Boston Fed president who has voting rights this year, said she believes the Federal Reserve has no need to continue cutting rates in December.

On that day, Collins said in an interview during a break in an economic conference that since August, the Federal Reserve has already carried out two rate cuts of 25 basis points, slightly tilting its monetary policy stance toward suppressing inflation. Collins pointed out that given that the inflation rate has continued to stay above the Federal Reserve’s 2% target, such a policy stance may still be appropriate, especially against the backdrop of strong performance in financial markets supporting economic resilience.

Collins’ remarks further highlighted disagreements among policymakers regarding future monetary policy actions. After the Federal Reserve cut rates consecutively for the second month in a row in October, multiple officials have expressed opposition to, or uncertainty about, a third consecutive rate cut in December. The meeting minutes released by the Federal Reserve last week showed that policymakers had significant differences on monetary policy, and with the government shutdown leading to missing key economic data, assessments of the economic situation became even more complicated.

Daily Economic News, compiled from Securities Times and public information

(Editor: Wen Jing)

Keywords:

                                                            Cryptocurrency
                                                            Bitcoin