8.6 AI evening news｜The encryption market's big Rebound has sparked heated discussions, with expectations of a rate cut by the Fed heating up, and the yen Arbitrage trading triggering a chain reaction

encryption market has rebounded significantly

The encryption market has rebounded significantly, with the total market cap returning to $2 trillion. After BTC briefly fell below $50,000, it rebounded, and there are different opinions among encryption experts regarding the future market trends.

Some people believe that the current Oversold level is a good buying opportunity, while others are concerned about the possibility of a larger decline. Overall, most people remain cautiously optimistic.

The expectation of Fed rate cut heats up

Multiple institutions are expected to cut interest rates twice before the end of the year. Daniel Tan, portfolio manager at Grasshopper Asset Management, said that it would be more reasonable for the Fed to cut interest rates twice by the end of 2024, once in September and once in November, for a total reduction of 75 basis points by the end of the year.

This indicates a potential opportunity to increase bonds in the coming months.

Japanese Yen Arbitrage trading triggers a chain reaction

As speculators adapt to higher Interest Rates in Japan, encryption assets have become part of the victims of the yen Arbitrage trading Close Position. Hayden Hughes, the director of Growth’s Cryptocurrency investments, said that these investors are also facing a significant rise in Hedging costs due to Exchange Rate Fluctuations between the US dollar and the yen.

Continued pressure from macro factors

From a broader time perspective, the Intrerest Rate environment, the possibility of Trump’s election victory, and the redemption pressure from Mt.Gox have also brought pressure to the Cryptocurrency market.