Cryptocurrency market surges across the board! Bitcoin price hits $87,000

On the morning of November 24th Beijing time, the cryptocurrency market surged across the board. Bitcoin price rose above $87,000, up more than 2% in 24 hours. Ethereum increased over 1%, Dogecoin rose over 3%, and XRP gained over 4%.

Image source: CoinGlass screenshot

According to CoinGlass data, over 110,000 traders were liquidated in the past 24 hours.

Recently, the cryptocurrency market has experienced increased volatility. This year, Bitcoin once surged above $126,000 but recently retraced to around $80,000, a significant pullback. According to Beijing Business Daily, industry experts believe that crypto assets are far more volatile than traditional assets. In the short term, attention should be paid to whether the $80,000 support level holds. If this support can be maintained, the market may see a rebound, but the strength and sustainability of such a rebound remain uncertain, as multiple adverse factors currently facing the market have not been fully resolved. If the $80,000 support is broken, Bitcoin’s price could further decline to find a new support zone. Investors should assess risks rationally and proceed cautiously.

On the news front, there is increasing division within the Federal Reserve regarding the outlook for a rate cut in December.

According to media reports, on November 21 local time, Federal Reserve Vice Chairman John Williams made a dovish statement. He believes that as the downside risks to the labor market have increased and inflation risks have eased, the Fed still has room to cut interest rates further in the near term. Stimulated by this dovish comment, traders’ bets on a December rate cut have significantly increased. According to the CME FedWatch Tool, after Williams’ speech on Friday, the market’s expectation for a December rate cut surged to about 70%, nearly doubling from less than 40% the day before.

Additionally, Federal Reserve Board member Michelle Bowman stated that if her vote becomes decisive, she would support a 25 basis point rate cut. She also noted that labor market data has not met expectations for strength.

Boosted by the dovish comments, the three major U.S. stock indices closed higher on November 21, with the Dow up 1.08%, the S&P 500 up 0.98%, and the Nasdaq up 0.88%. However, for the week as a whole, the Dow fell 1.91%, the S&P 500 declined 1.95%, and the Nasdaq dropped 2.74%.

On November 22, however, Susan Collins, a voting member of the Federal Reserve from the Boston Fed, stated that she does not see a need for the Fed to continue rate cuts in December.

In an interview during an economic conference, Collins said that since August, the Fed has implemented two 25 basis point rate cuts, slightly leaning towards tightening monetary policy to curb inflation. She pointed out that given inflation remains above the Fed’s 2% target, such a stance may still be appropriate, especially with strong financial markets supporting economic resilience.

Collins’ remarks further highlight the division among policymakers regarding future monetary policy actions. After the Fed’s second consecutive rate cut in October, several officials expressed opposition or uncertainty about a third rate cut in December. The minutes from last week’s meeting showed significant disagreement among policymakers on monetary policy, compounded by the government shutdown, which led to missing key economic data and made economic assessments more complex.

Daily Economic News compiled from Securities Times and public information

(Edited by Wen Jing)

Keywords: Cryptocurrency Bitcoin