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

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

Image source: CoinGlass screenshot

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

Recently, volatility in the cryptocurrency market has increased. This year, Bitcoin once climbed to above $126,000, but in recent days it pulled back to around $80,000 at one point—an extremely large pullback. 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, it is necessary to monitor the effectiveness of the $80,000 support level. If the $80,000 support level can be effectively held, the market may see a certain degree of rebound, but the strength and sustainability of the rebound remain uncertain, because multiple unfavorable factors currently facing the market have not yet been fully eliminated. If the $80,000 support level is effectively broken through to the downside, the price of Bitcoin may further fall in search of new support areas. Investors need to assess risks rationally and make cautious arrangements.

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

According to media reports, on November 21 local time, the Federal Reserve’s “No. 3” New York Fed President William(s) made dovish remarks. He said that as downside risks to the labor market have already strengthened, while upside risks to inflation have eased somewhat, 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 clearly heated up. According to the CME FedWatch tool, after Williams’ speech on Friday, traders’ probability expectations for a December rate cut by the Federal Reserve surged to about 70%, nearly doubling from less than 40% the day before.

In addition, Federal Reserve Governor Milan said that if her vote becomes the deciding vote, she would support a rate cut of 25 basis points. She also pointed out that labor market data have not met the expected strength.

Boosted by the dovish remarks, on November 21 local time, all three major U.S. stock indexes closed higher. The Dow rose 1.08%, the S&P 500 rose 0.98%, and the Nasdaq rose 0.88%. However, over the full week, the Dow fell 1.91%, the S&P 500 fell 1.95%, and the Nasdaq fell 2.74%.

But on November 22 local time, Susan Collins, the Boston Fed president who has voting rights this year, said she believes the Federal Reserve does not need to continue cutting rates in December.

On that day, in an interview on the sidelines of an economic conference, Collins said that since August, the Federal Reserve has already carried out two rate cuts of 25 basis points each, which has made the monetary policy stance slightly more focused on suppressing inflation. Collins said that given that the inflation rate remains consistently above the Federal Reserve’s 2% target level, such a policy stance may still be appropriate, especially in the context of strong performance in financial markets supporting economic resilience.

Collins’ remarks further highlighted disagreements among decision-makers regarding future monetary policy actions. After the Federal Reserve cut rates for the second consecutive time in October, several officials expressed opposition to—or uncertainty about—a third consecutive rate cut in December. The minutes of the Federal Reserve’s meeting released last week showed that decision-makers had significant disagreements on monetary policy, and coupled with the government shutdown resulting in the absence of key economic data, its assessment of the economic situation has become even more complex.

Daily Economic News, compiled with Securities Times and public information

(Editor: Wen Jing)

Keywords:

                                                            Cryptocurrency
                                                            Bitcoin