Daily News | Powell's Hawkish Speech Hit Expectations of Interest Rate Cuts, BTC Surged and Then Fell, Leading to Market Collapse

Crypto Daily Digest: ETH/BTC hit new low in nearly three years, Powell’s hawkish remarks undermined expectations of interest rate cuts

According to Farside Investor data, the US Bitcoin spot ETFs had a net outflow of $220 million yesterday, including $127 million from BlackRock IBIT data, $192 million from Fidelity FBTC, $161 million from Ark ARKB, and $113 million from Bitwise BITB.

Yesterday, the US Ethereum spot ETFs experienced an outflow of $4 million. BlackRock’s ETHA inflow was $19 million, and Grayscale ETHE outflow was $21.9 million.

Data: ETH/BTC exchange rate hit lowest point since April 2021, touching 0.03462

According to Gate.io market information, the ETH/BTC exchange rate fell to 0.03462, now reporting 0.03468, with a 24-hour decline of 3.42%, reaching its lowest point since April 2021.

After Trump’s election victory, spot ETFs attracted $4.7 billion in inflows, with a net inflow of $28.3 billion for the entire period

According to TheBlock, the cumulative trading volume of the US Bitcoin spot ETF has exceeded $500 billion since its launch in January this year. BlackRock IBIT set a new daily trading volume record of $5.2 billion on November 13, breaking the previous record of 1,253 days held by IEMG funds with asset size exceeding $40 billion in just 211 days.

Data shows that Bitcoin ETFs have received a net inflow of $2.4 billion since the beginning of this week. Since Trump’s election victory, ETFs have attracted $4.7 billion in inflows, with a total net inflow of $28.3 billion since listing. The asset management scale of all Bitcoin ETFs is approximately $89 billion, with IBIT reaching $41.1 billion, ranking first.

Powell: Fed doesn’t need to “rush” to cut interest rates

Federal Reserve Chairman Powell stated that due to the strong US economy, the Fed does not need to “rush” to lower interest rates and will “carefully observe” to ensure that certain inflation indicators remain within acceptable ranges.

Powell reiterated that the Federal Reserve’s policy rate path will depend on upcoming data releases and the evolution of the economic outlook. He said that the inflation rate is approaching the Federal Reserve’s target of 2%, but it has not yet been reached. The Federal Reserve will closely monitor core indicators of inflation in goods and services, excluding housing, which have been declining over the past two years. “We expect these indicators to continue fluctuating in the near term range, and the road to the Fed’s 2% target may be bumpy at times. However, we still believe that we are on the right track in terms of inflation.”

Market Trends: PNUT rose and then fell, LTC leveraged meme concept to pull the market

Market Hotspots

The well-established POW token LTC rose, and its official Twitter account announced that LTC has become a meme coin, with full entertainment effects; Market funds generally favor highly circulating meme coins, and many old projects are taking advantage of the meme concept to boost market sentiment, which may reach its peak in a short period of time;

The AI concepts meme ACT and GOAT performed well in the market, with significant fluctuations in intraday amplitude and frequent rebound situations; ACT once surpassed a market cap of $900 million, while GOAT was blocked by a market cap of $1 billion. As the leading tokens of AI memes, there is only room for small market cap AI memes to grow when their market cap experiences greater growth.

Mainstream Coins

BTC entered a short-term adjustment range and is currently consolidating around $88,000. The market sentiment has been too hot recently, and a temporary adjustment is more conducive to future market volatility;

ETH has been declining for three consecutive days and is currently adjusting around $3,050. The ETH/BTC exchange rate has once again fallen sharply, and there will be a moment of performance for ETH only after BTC reaches a historical high;

Altcoins generally fell, and in recent days, strong coins such as PNUT and WIF adjusted due to their short-term gains being too large.

Macro News: The three major US stock indices collectively closed down, with the probability of the Fed cutting interest rates dropping to 58.7%

The three major indexes of the US stock market collectively closed down, with the S&P 500 index falling 0.61% to 5,949.17 points; The Dow Jones Industrial Average fell 0.47% to 43,750.86 points; The Nasdaq index fell 0.64% to 19,107.65 points. The benchmark 10-year Treasury yield is 4.43%, while the 2-year Treasury yield, which is most sensitive to the Federal Reserve policy rate, is 4.34%.

Fed Chairman Powell delivered a written speech in Dallas on Thursday, stating that the recent performance of the US economy has been “quite good”, giving the central bank room to cautiously cut interest rates. Powell said, “The economy has not sent any signals of a need to urgently lower interest rates, and the better economic conditions give us the ability to act cautiously when making decisions. The inflation rate is getting closer to our long-term target of 2%, but it has not yet been achieved. We are committed to fulfilling this mission, and with a roughly balanced labor market and well anchored inflation expectations, I expect the inflation rate to continue to decline towards our 2% target, although there may be occasional bumps.” Powell did not comment on the possibility of a rate cut at the December meeting. According to CME Federal Reserve observations, the probability of the Fed cutting interest rates by 25 basis points in December is 58.7%.