As US Federal Reserve officials indicated that interest rates may not be cut immediately this year, major US stock indices fell sharply on Thursday. The S&P 500, Nasdaq, and Dow Jones all dropped more than 1%, with the Dow falling 530 points, marking its worst day since March 2023.
In the bond market, the yield on the benchmark 10-year US Treasury note fell from 4.354% on Wednesday to 4.308%.
Meanwhile, the cryptocurrency market entered a recovery mode, with increased volatility in mainstream currencies. Bitcoin initially dropped to $65,070 at the opening of the US stock market, but later reversed its trend and rebounded to a high of $69,370, with a daily increase of 6.62%. At the time of writing, the BTC trading price was around $67,820, with a 24-hour increase of approximately 3%.
Altcoins returned to an upward trend, with the majority of the top 200 tokens recording gains, while about 24 coins experienced losses. Dogecoin (DOGE) rose by 6%, Shiba Inu (SHIB) rose by nearly 8%, and Dogwifhat (WIF), Pepe (PEPE), and Bonk Inu (BONK) all saw an average increase of 4% on the day.
The rate cut action remains uncertain. In March, Federal Reserve officials reiterated their forecast of three rate cuts this year, but signs of continued strength in the US economy have raised concerns among some investors about the possibility of such a scenario.
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated today that if inflation continues to stabilize, “it would make me question whether we need to cut interest rates.”
Kashkari is one of the more hawkish members of the Federal Reserve in this cycle, so his comments are not surprising, but the stock market still reacted to them. His comments are also inconsistent with yesterday’s remarks by Federal Reserve Chairman Jerome Powell, who stated at Stanford University that he still expects a rate cut at some point this year.
Meanwhile, Tom Barkin, President of the Richmond Fed, stated that “a gradual approach by the Federal Reserve is wise” and that “no one wants to see inflation reemerge.”
Investors are paying attention to the March employment report to be released by the Bureau of Labor Statistics tomorrow, in order to better understand the Federal Reserve’s next actions, as this report is seen as a key reference indicator for the central bank’s monetary policy adjustments. Analysts expect the unemployment rate to remain unchanged at 3.9%, well below the historical average of around 5.7%. Analysts state that if the economy appears to be accelerating too quickly, central bank officials will choose not to “land” and will instead raise interest rates again.
Michael Sheldon, Executive Director of RDM Financial Group, said, “The big debate for the rest of the year will actually be how many times we cut rates and how quickly inflation will come down if this situation continues.”
PlanB: Bitcoin will not fall below $60,000 again
PlanB, the inventor of the stock-to-flow (S2F) model, believes that Bitcoin will not fall below $60,000 again because it has been a strong support level for the past five months.
In his analysis on his personal channel, he stated, “The ‘realized price’ for the past five months, which is the short-term holding price, is currently $60,000. This will be an aggressive lower limit because if we look at the previous bull market, we can see that Bitcoin prices never went below the realized price for five months. So this is my personal offensive bottom line, and I believe we will not go below this level again.”
It is worth noting that CryptoQuant data shows that the current BTC futures funding rate, which is the fee paid to traders based on the difference between the perpetual contract market and the spot price, is close to its historical high. The team explains, “The funding rate represents the sentiment of traders in the perpetual swap market, and the amount is proportional to the number of contracts. A positive funding rate indicates that long traders dominate and are willing to pay funds to short traders.”
The last time the funding rate reached such a high level was in April 2021. Just three months later, Bitcoin plummeted from above $60,000 to below $30,000, indicating that this pullback may not be over yet.
Market analyst Bloodgood believes, “There are still about 16 days until the Bitcoin halving, so significant volatility is expected, and technical levels may not be important. The level of $68,000 is the inevitable path for continued upward movement, so we expect the bulls to continue to dominate.”
Author: Mary Liu, Bitpush News
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Tags: 2023 Market, Bonk, DOGE, Dogwifhat, MEME, PEPE, PlanB, halving, interest rate hike, altcoins, bull market, Federal Reserve, US stocks, market trends, rate cut, Powell
Disclaimer: All articles from Bitpush News represent the author’s views and do not constitute investment advice.
Original article link: [https://www.bitpush.news/articles/6573547](https://www.bitpush.news/articles/6573547)
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