Global financial markets have experienced significant volatility recently, both in stocks and cryptocurrencies, driven by multiple factors. The start of the U.S. Federal Reserve's interest rate cut cycle has eased market concerns about liquidity contraction, and the Chinese government has also adopted a policy of large-scale release of funds, injecting fresh vitality into the global market. This series of macroeconomic actions directly reflects On top of the strong performance in the stock and cryptocurrency markets.
The U.S. Department of Commerce released personal consumption expenditures (PCE) data for August on September 27, showing that inflationary pressures are easing. The annual growth rate of the PCE price index dropped to 2.2%, slightly lower than market expectations of 2.3%, further supporting the Federal Reserve's decision to cut interest rates. Against this backdrop, U.S. stock markets performed well in early trading. However, as the Beijing government restricted Chinese companies from purchasing Huida AI chips, Huida’s share price fell by 2.13% and dragged down the overall semiconductor sector.
Although Huida's stock price suffered a setback, the overall stock market still performed well, especially the Chinese concept stock index - Nasdaq China Golden Dragon Index (HXC), which rose 23.94% in a week. This also highlights the short-term economic benefits brought by China's economic stimulus measures, further promoting the overall recovery of risk assets.
Bitcoin breaks through 66K, crypto market picks up
At the same time, the global cryptocurrency market also showed a strong rebound. Bitcoin once exceeded $66,498 on September 27, setting a new high since August, and has increased by more than 10% this month. According to data from Bloomberg, Bitcoin has fallen an average of 5.9% in September over the past decade, making September often regarded as a "short" month for the cryptocurrency market. However, with the implementation of interest rate cuts and the improvement of global financial liquidity, Bitcoin's performance this month can be described as "going against the trend." Not only that, other smaller altcoins also performed well, with some rising by more than 20%. This reflects that investors are becoming more willing to take risks in the cryptocurrency market amid loose global liquidity. From a technical perspective, Bitcoin successfully broke through the 65K neckline level, which is an important psychological price. However, further good news is still needed to challenge the all-time high of $73,798 set in March this year.
Binance founder CZ regains freedom, BNB price recovers
Another big news is that Binance founder Changpeng Zhao (CZ) was released early on September 27. Although Changpeng Zhao has stepped down as Binance’s CEO, he remains the company’s largest shareholder and an important opinion leader in the cryptocurrency community. His return to the stage has undoubtedly brought new hope to the cryptocurrency market. Affected by this news, the price of Binance Coin (BNB) quickly rebounded to above $600.
Cryptocurrency-related companies have also seen significant gains in their share prices. Exchange Coinbase (COIN) and Bitcoin development firm MicroStrategy (MSTR) were in the spotlight, rising 6% and 19% respectively.
Driven by both U.S. interest rate cuts and China's release of funds, global capital markets, especially risk assets, have rebounded significantly. Bitcoin, as a market benchmark, broke through the important price of 66K, which also led to the recovery of the entire cryptocurrency market. However, in the face of technical pressure levels and the challenges of global economic uncertainty, future market trends still need to be carefully observed. Regardless, it's certainly been a good week for risk asset investors.
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