Bitcoin Falls 1.81% Amidst Powell’s Hawkish Speech, Yet Sets Record High for September

On October 1, local time, Federal Reserve Chairman Powell indicated during a speech that if the economy aligns with expectations, the Federal Reserve might implement two more interest rate cuts this year, totaling 50 basis points. The market interpreted Powell’s comments as being predominantly “hawkish.” Consequently, market speculation regarding a 50-basis-point rate cut by the Federal Reserve in November has decreased significantly. Analysis from 4E reveals that the three primary U.S. stock indices declined following Powell’s speech but rebounded during late trading, closing marginally higher. Both the Dow Jones and S&P 500 indexes achieved new record closing highs. Historically, U.S. stocks perform poorly in September, yet this year saw the Dow Jones increase by 1.85%, the S&P 500 by 2.02%, and the Nasdaq by 2.68%. Notably, the Dow Jones and S&P 500 have each recorded five consecutive months of gains. The cryptocurrency market experienced a downturn; Bitcoin decreased by 1.81% to $63,600, while Ethereum slightly dropped by 0.27%. Despite this decline, Bitcoin’s September performance was strong, closing up 7.35% and marking a record high. Historically, when Bitcoin performs well in September, it tends to continue rising through the year-end. Gold fell 0.47% but increased by 4.74% in September; the US dollar index rose 0.30%, yet decreased by 0.93% over the month. With the Federal Reserve’s scheduled rate cut in September, global central banks have accelerated their rate adjustments, improving the macroeconomic environment and enhancing investors’ risk appetite. eeee.com, a financial trading platform, supports various assets including cryptocurrencies, stock indices, bulk gold, and foreign exchange. This Friday, the release of the US non-farm data for September will offer essential insights into the U.S. economic outlook and potential Federal Reserve rate cuts. 4E advises investors to remain aware of market volatility and to allocate assets prudently.