Bank financial reports boost US stocks, BTC falls back to 110K, encryption sentiment remains fearful.

Boosted by strong earnings reports from American banks and Morgan Stanley, the S&P 500 index rebounded on Wednesday. However, the crypto market still seems to have not recovered from last Friday's big dump, with Bitcoin (BTC) falling back to 110K, and Ether (ETH) once again breaking below the $4,000 mark, as the fear and greed index dropped to the fear zone at 37.

Strong bank earnings boost, VIX still oscillating at high points.

Boosted by strong earnings reports from U.S. banks and Morgan Stanley, the S&P 500 index rebounded on Wednesday.

CFRA Research Chief Investment Strategist Sam Stovall said:

"The banking sector's performance has been outstanding, with profits and revenues exceeding expectations. This indicates that the economy remains strong, coupled with the possibility of the Federal Reserve lowering interest rates again at the end of this month, which has boosted investor optimism."

However, the recent rise in volatility is still ongoing. With the escalation of global trade tensions, investors have been in a state of high anxiety lately. The Wall Street Fear Index (VIX) surged to 20.66 yesterday, marking the highest point since August.

Source: CNBC

U.S. Treasury Secretary Mnuchin stated that the recent stock market volatility caused by the trade war has not deterred federal officials from engaging in difficult negotiations with China. Meanwhile, the U.S. government shutdown has entered its third week, exacerbating the current uncertainty. Due to the shutdown, the release of key economic data from federal agencies has been indefinitely suspended, creating blind spots for traders.

BTC falls back to 110K, market sentiment remains cautious and fearful.

The cryptocurrency market has fallen by 2.26% in the past 24 hours, with the Fear and Greed Index sliding down to the fear zone of 37. As funds shift towards safer "large-cap coins," Bitcoin's dominance has risen to 59%, while the altcoin season index has dropped to a low of 31, indicating that market confidence remains very weak.

Bitcoin (BTC) fell back to 110K, Ether once again broke below the 4,000 dollar mark, and the crypto market seems to still have not recovered from last Friday's big dump. However, research and brokerage firm K33 stated that after the severe deleveraging that swept through the derivatives market last week, it has now entered a healthier phase, describing this reset as "constructive bullish."

K33 believes that the next few weeks are a good opportunity for capital to enter Bitcoin, and it is expected that the reset of portfolios and the normalization of capital dynamics will lay a positive foundation for new upward momentum.

This article discusses how bank financial reports boost U.S. stocks, BTC falls back to 110K, and the encryption sentiment remains fearful. It first appeared on Chain News ABMedia.