First Line | Powell's hawkish speech dampens expectations of rate cuts, BTC surges and then falls, causing the market to collapse.

Daily Digest: ETH/BTC hits near three-year low, Powell's hawkish remarks dampen rate cut expectations

According to Farside Investor data, the US BTCSpot ETF had a net outflow of 220 million US dollars yesterday, with BlackRock IBIT having an inflow of 127 million US dollars, Fidelity FBTC had a net outflow of 192 million US dollars, Ark Invest ARKB had a net outflow of 161 million US dollars, and Bitwise BITB had an outflow of 113 million US dollars.

Yesterday, the US ETHA Spot ETF saw a outflow of 4 million US dollars. Among them, 19 million US dollars flowed into BlackRock ETHA, while Grayscale ETHE saw an outflow of 21.9 million US dollars.

Data: ETH/BTC exchange rate hits the lowest point since April 2021, reaching 0.03462

According to the market information of gate, the ETH/BTC Exchange Rate has dropped to 0.03462, currently trading at 0.03468, with a 24-hour decline of 3.42%, reaching the lowest point since April 2021.

After Trump's victory, Spot ETF has attracted a net inflow of $4.7 billion, with a total net inflow of $28.3 billion.

According to TheBlock, the US BTCSpot ETF has accumulated a volume of over 500 billion US dollars since its launch in January this year. BlackRock IBIT set a new daily volume record of 5.2 billion US dollars on November 13, breaking the previous record of 1,253 days held by the IEMG fund by surpassing 40 billion US dollars in assets in just 211 days.

Data shows that BTC ETF has received a net inflow of 2.4 billion US dollars since this week. Since Trump's election victory, ETF has attracted a net inflow of 4.7 billion US dollars, with a total net inflow of 28.3 billion US dollars since listing. Currently, the Assets Under Management of all BTC ETFs is approximately 89 billion US dollars, with IBIT being the largest with a scale of 41.1 billion US dollars.

Powell: The Fed does not need to "rush" to cut interest rates

Federal Reserve Chairman Powell said that due to the strong US economy, the Federal Reserve does not need to "rush" to drop interest rates and will "carefully monitor" to ensure that certain inflation indicators stay within acceptable ranges.

Powell reiterated that the Fed's policy Intrerest Rate path will depend on the upcoming data releases and the evolution of the economic outlook. He said that the inflation rate is approaching the Fed's 2% target but has not yet reached it. The Fed will closely follow the core indicators of goods and services inflation, excluding housing, which have been declining over the past two years. "We expect these indicators to continue to Fluctuate in the near term, and the road to the Fed's 2% target can be bumpy at times. But we still believe that we are on track with inflation.

Market Analysis: PNUT rises and falls, LTC rides the meme concept pump

Market Hotspots

The old-school POW Token LTC pump, announced by its official Twitter account that LTC has become a meme coin, with full entertainment effect; the market generally favors meme coins with high circulation of funds, and many old projects ride the meme concept pump, and market sentiment may reach its peak in the short term;

AI concept meme ACT and GOAT have performed well in the market, with large fluctuations during the day and frequent rebounds with long wick candles. ACT once surpassed a market capitalization of 900 million US dollars, while GOAT was stopped by a market capitalization of 1 billion US dollars. As the leading tokens of AI meme, their market capitalization needs to rise in order to create room for the rise of smaller market cap AI meme.

Market Trends

BTC has entered a short-term consolidation range, currently trading around $88,000. The recent market sentiment has been overly bullish, and a temporary correction would be more beneficial for a potential breakout in the future.

ETH has fallen for 3 consecutive days, currently adjusting near $3050, and the ETH/BTC Exchange Rate has dropped significantly again, waiting for ETH to shine after BTC hits a new all-time high.

Altcoins are generally falling, with strong coins like PNUT and WIF adjusting due to excessive short-term gains in the past few days;

Macro News: The three major U.S. stock indexes collectively closed lower, with the probability of a Fed interest rate cut falling to 58.7%.

The three major US stock indexes all fell, with the S&P 500 falling by 0.61% to 5949.17 points; the Dow Jones Industrial Average falling by 0.47% to 43750.86 points; and the Nasdaq falling by 0.64% to 19107.65 points. The 10-year yield of Benchmark US Treasuries is 4.43%, and the 2-year yield, which is most sensitive to the Federal Reserve's Interest Rate policy, is 4.34%.

Fed Chairman Powell said in a written speech in Dallas on Thursday that the recent performance of the U.S. economy has been "quite good," giving the Central Bank space to cautiously lower the Intrerest Rate. Powell said, "The economy has not sent any signals that require us to rush to drop the Intrerest Rate. The relatively good economic conditions enable us to be cautious in decision-making. The inflation rate is getting closer to our long-term target of 2%, but it has not been achieved yet. We are committed to completing this mission. In a situation where the labor market is roughly balanced and inflation expectations are well anchored, I expect the inflation rate to continue to decline towards the 2% target, although there may be fluctuations from time to time." Powell did not comment on the possibility of a rate cut at the December meeting. According to CME's Fed watch, the probability of a 25 basis point rate cut by the Fed in December is 58.7%.

Author: Icing, Gate.io Researcher This article represents only the author's point of view and does not constitute any trading advice. This article is original content, and the copyright is owned by Gate.io. If you need to reprint, please indicate the author and source, otherwise legal responsibilities will be pursued.