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. Bitcoin's price surpassed $87,000, with a 24-hour increase of over 2%. Ethereum rose more than 1%, Dogecoin increased over 3%, and XRP jumped more than 4%.

Image source: CoinGlass screenshot

According to data from CoinGlass, over 110,000 people experienced liquidations in the cryptocurrency market in the past 24 hours.

Recently, the volatility in the cryptocurrency market has intensified. Since the beginning of this year, Bitcoin once soared to over $126,000, but recently it has pulled back to around $80,000, marking a significant decline. According to Beijing Business Daily, industry insiders believe that the volatility of crypto assets far exceeds that of traditional assets, and the effectiveness of the $80,000 support level should be monitored in the short term. If the $80,000 support level can be effectively maintained, the market may experience a certain degree of rebound, but the strength and sustainability of the rebound remain uncertain as multiple adverse factors facing the market have not yet been completely resolved. If the $80,000 support level is effectively broken, Bitcoin's price may further decline in search of new support areas. Investors need to assess risks rationally and proceed with caution.

In terms of news, there is currently increasing disagreement within the Federal Reserve regarding the outlook for interest rate cuts in December.

According to media reports, on November 21 local time, the Federal Reserve's "third-in-command," New York Fed President John Williams, made "dovish" remarks. He believes that as the downside risks in the labor market have increased and the upside risks to inflation have eased, there is still room for further interest rate cuts by the Federal Reserve in the near future. Stimulated by these "dovish" remarks, traders' bets on a rate cut by the Federal Reserve in December have significantly increased. According to the CME FedWatch Tool, after Williams' speech on Friday, traders in the interest rate futures market raised their expectations of the probability of a Federal Reserve rate cut in December to about 70%, nearly doubling from less than 40% a day earlier.

Additionally, Fed Governor Michelle Bowman stated that she would support a 25 basis point rate cut if her vote became the deciding one. She also pointed out that the labor market data has not met the expected strength.

Boosted by "dovish" remarks, on November 21 local time, all three major U.S. stock indices closed higher, with the Dow Jones up 1.08%, the S&P 500 up 0.98%, and the Nasdaq up 0.88%. However, for the week, the Dow Jones fell 1.91%, the S&P 500 dropped 1.95%, and the Nasdaq declined 2.74%.

However, on November 22 local time, Susan Collins, the voting Federal Reserve President of the Boston Fed this year, stated that she does not believe there is a need for the Federal Reserve to continue cutting rates in December.

In an interview during an economic conference that day, Collins stated that the Federal Reserve has already implemented two rate cuts of 25 basis points since August, slightly shifting the monetary policy stance towards curbing inflation. Collins pointed out that given the inflation rate continues to remain above the Federal Reserve's 2% target, such a policy stance may still be appropriate, especially in the context of a strong financial market supporting economic resilience.

Collins' remarks further highlight the divergence among policymakers regarding future monetary policy actions. After the Federal Reserve's second consecutive rate cut in October, several officials expressed opposition or uncertainty regarding a third consecutive cut in December. The minutes from the Federal Reserve's meeting last week indicated significant disagreement among policymakers on monetary policy, and the government shutdown leading to the absence of key economic data complicates their judgment of the economic situation.

Daily Economic News, compiled from Securities Times and public information

(Edited by: Wenjing)

Keywords: Cryptocurrency Bitcoin