【October 9 | Global Market News and Data Analysis】
1. Friday got off to a rocky start: Bitcoin weakened before making a modest rebound, while concerns about AI earnings resurfaced in U.S. stocks;
2. Fed’s Musalem: Further rate hikes may be needed over the next 6 to 9 months;
3. Altcoins fell sharply, with previously strong performers also weakening;
4. Ethereum’s Glamsterdam upgrade was activated on the testnet, and the block gas limit was raised to about 200 million.
St. Louis Fed President Musalem struck a hawkish tone, saying the Fed would need to raise rates again to bring inflation back to its 2% target. He acknowledged that policy needed to tighten further, and said that if “timely” meant roughly 18 months, there could still be room for rate hikes over the next 6 to 9 months. Even with Treasury yields rising, financial conditions remain relatively loose. On the late-October rate-setting meeting, he remained open-minded and made no predictions. Meanwhile, three U.S. aircraft carriers are gathering in the Middle East, and the Pentagon is considering strikes on Iran’s energy and missile facilities. Trump has put the action on hold for now, leaving room for diplomacy. Overnight, U.S. tech stocks broadly fell amid rumors about AI revenue, while Bitcoin edged up to around $81,800.
For crypto markets, hawkish comments in the style of Powell, combined with geopolitical tensions, tend to boost the dollar and demand for safe havens, putting temporary pressure on high-risk assets such as BTC. However, if inflation cools and rate-hike expectations are realized, liquidity pressures could ease. Along with capital rotating out of tech stocks after their pullback, this could lend Bitcoin some resilience. In the short term, price action is likely to remain volatile as markets react to the Fed’s rate outlook and developments between the U.S. and Iran. Whether the trend can continue will depend on whether the pace of tightening and safe-haven sentiment ease at the same time.
1. Friday got off to a rocky start: Bitcoin weakened before making a modest rebound, while concerns about AI earnings resurfaced in U.S. stocks;
2. Fed’s Musalem: Further rate hikes may be needed over the next 6 to 9 months;
3. Altcoins fell sharply, with previously strong performers also weakening;
4. Ethereum’s Glamsterdam upgrade was activated on the testnet, and the block gas limit was raised to about 200 million.
St. Louis Fed President Musalem struck a hawkish tone, saying the Fed would need to raise rates again to bring inflation back to its 2% target. He acknowledged that policy needed to tighten further, and said that if “timely” meant roughly 18 months, there could still be room for rate hikes over the next 6 to 9 months. Even with Treasury yields rising, financial conditions remain relatively loose. On the late-October rate-setting meeting, he remained open-minded and made no predictions. Meanwhile, three U.S. aircraft carriers are gathering in the Middle East, and the Pentagon is considering strikes on Iran’s energy and missile facilities. Trump has put the action on hold for now, leaving room for diplomacy. Overnight, U.S. tech stocks broadly fell amid rumors about AI revenue, while Bitcoin edged up to around $81,800.
For crypto markets, hawkish comments in the style of Powell, combined with geopolitical tensions, tend to boost the dollar and demand for safe havens, putting temporary pressure on high-risk assets such as BTC. However, if inflation cools and rate-hike expectations are realized, liquidity pressures could ease. Along with capital rotating out of tech stocks after their pullback, this could lend Bitcoin some resilience. In the short term, price action is likely to remain volatile as markets react to the Fed’s rate outlook and developments between the U.S. and Iran. Whether the trend can continue will depend on whether the pace of tightening and safe-haven sentiment ease at the same time.