[Bitcoin prices rise as Wall Street falls on Fed uncertainty]
U.S. stocks have been in the doldrums recently, with the S&P 500 index falling 1.32% to close at 5,870.62 points, and the Nasdaq index falling 2.24% to 18,680.12 points, after a brief rebound after the election. For the week, the S&P 500 fell 2.1%, the Nasdaq fell 3.2% and the Dow Jones fell 1.2%. Federal Reserve Chairman Powell said there is no rush to cut interest rates yet, while Boston Fed President Collins believes there is still uncertainty about a rate cut in December.
Retail sales increased by 0.4% in October and 12,000 new non-farm jobs were created, both lower than market expectations, further exacerbating market volatility. Technology stocks came under pressure, with the S&P 500 information technology sector falling more than 2%. Nvidia, Meta, Alphabet and Microsoft all suffered heavy losses. Only Tesla bucked the trend and rose 3% due to its potential compatibility with Trump's policies.
Meanwhile, Bitcoin surged past $90,000, gaining 32% since Election Day and adding 16% this week toward its $100,000 target. Analysts at BCA Research predict that Bitcoin could exceed $200,000 in the long term and view it as a "non-confiscatable asset" to fight inflation and withstand financial collapse. The current market value of Bitcoin only accounts for 10% of the total market value of such assets. As market share increases and the supply limit is reached, the price is expected to rise further.
Bitcoin’s correlation with traditional markets has increased, reaching an all-time high of 50% in September. Although Bitcoin is known for its volatility, it is increasingly becoming a store of value and attracting safe-haven funds. However, its high volatility still makes it a high-yield and high-risk asset, which may be further affected by institutional investors in the future.
