Global Financial Rhythm Game: China's Dual Reduction Policy, Bitcoin Market Fluctuation, and the Eve of the Federal Reserve Decision
Market Observation
With China's announcement of RRR and interest rate cuts and confirmation of economic and trade talks with the United States, risk appetite sentiment in global markets has rebounded significantly. Pan Gongsheng, governor of the People's Bank of China, announced a 0.5 percentage point cut in the reserve requirement ratio, a 0.1 percentage point cut in the policy rate to 1.4%, and a 0.25 percentage point cut in the interest rate on the housing provident fund. This policy adjustment has a synergistic effect on the announcement by the Chinese Foreign Ministry that Vice Premier He Lifeng will hold economic and trade talks with U.S. Treasury Secretary Bessant during his visit to Switzerland from May 9 to 12, driving a general rally in Asian stock markets and higher commodity futures prices such as iron ore and steel.
At the same time, global markets are keeping a close eye on the Federal Reserve's upcoming interest rate decision, which will be announced at 2 a.m. tomorrow. According to the statistics of the data platform, despite political pressure to cut interest rates, the market expects that the probability of the Fed keeping interest rates unchanged in May is as high as 96.9%, and the probability of a rate cut is only 3.1%. Economic analysts pointed out that at present, the Federal Reserve has set a higher threshold for interest rate cuts, and policymakers need to see more convincing evidence of an economic slowdown before acting, especially hard data such as rising unemployment and weak wage growth, which is clearly weakening in the labor market.
New Hampshire officially signed HB 302, becoming the first state in the United States to pass "strategic bitcoin reserves" legislation, authorizing state treasurers to purchase bitcoin or digital assets with a market value of more than $500 billion, with a maximum position of 5% of total reserve funds. In contrast, Emma Reynolds, the UK's Secretary of State for the Economy, has indicated that the UK will not follow the example of the US in building a national crypto reserve, but prefers to include crypto assets in the existing financial regulatory framework, adhering to the principle of "same risk, same regulation".
! [Trading moment: On the eve of China's "double decline", bitcoin shock, and the Federal Reserve's interest rate decision, who is controlling the global financial rhythm?] ](https://img.gateio.im/social/moments-a71b12e903096d4581388fc012906ef8)
The price of bitcoin has been volatile for two weeks, and the data analysis agency pointed out that the price of bitcoin may face significant selling pressure as it approaches $99,000, and market analysts further said that the current key support levels for BTC are $92,500 and $89,000, and the market has returned to the key resistance zone between December and February. If it falls below $90,000, it will have a big impact on the technical and psychological level, and it may fall below the 200-day moving average. Industry veterans are optimistic in recent interviews, predicting that Bitcoin's current cycle could be between $500,000 and $1 million, and are optimistic about the prospect of combining blockchain with AI, scientific research and other fields.
It is worth noting that the MEME market has fluctuated violently in the past two days due to the "death" of Zerebro's co-creator Jeffy Yu, and the market value of its related token LLJEFFY once soared to $31 million, and has now recovered to $5.7 million. Since 1:48 p.m. on May 4th, LLJEFFY's development wallet and multiple associated addresses have begun to frequently trade and burn tokens, and today it was finally confirmed that Jeffy Yu faked the news of his death. With the truth revealed, this market-rending event may come to an end, but it is also a wake-up call for crypto market investors.
Sector Performance: The NFT sector fell by 2.96%, and the GameFi sector fell by 2.83%.
Liquidation Situation: A total of 1,135,385 people worldwide were liquidated, with a total amount of $314 million, of which $98.26 million in BTC, $67.67 million in ETH, and $10.31 million in SOL.
BTC Technical Analysis: Upper channel line (95261.41 USD), lower channel line (93375.05 USD)
ETH Technical Analysis: Upper channel line (1811.27 USD), lower channel line (1775.40 USD)
*Technical analysis explanation: When the price is above the upper and lower bounds, it indicates a medium to long-term bullish trend; conversely, it indicates a bearish trend. When the price is within the range or repeatedly passes through the cost range in the short term, it indicates a bottoming or topping state.
! [Trading moment: On the eve of China's "double decline", bitcoin shock, and the Federal Reserve's interest rate decision, who is controlling the global financial rhythm?] ](https://img.gateio.im/social/moments-2af7ddcf83b74a2c43435b241201e600)
ETF Fund Flow (as of May 6)
Bitcoin ETF: Net outflow of 85.63 million dollars
Ethereum ETF: Net outflow of 17.87 million dollars
Today's Market Outlook
Ethereum will undergo the Pectra upgrade on May 7 at 18:05.
Jito (JTO) will unlock 11.3 million tokens on May 7, valued at approximately 20.4 million dollars.
Ethereum Name Service (ENS) will unlock 1.45 million tokens on May 8, worth approximately 26.2 million dollars.
The United States will announce the Federal Reserve interest rate decision on May 8 at 2:00 ( upper limit )
Previous: 4.5% / Expected: 4.5%
The UK will announce its central bank interest rate decision on May 8 at 19:00.
Previous value: 4.5% / Expected: 4.25%
The United States will release the initial jobless claims for the week ending May 3 at 20:30 on May 8.
Previous value: 241,000 / Expected: 231,000
Top 500 Market Cap Daily Gains: KAITO increased by 31.81%, BAN increased by 21.75%, SYRUP increased by 15.93%, REX increased by 13.63%, SHFL increased by 12.34%.
Market Hot News
U.S. senators have introduced the MEME Act, which aims to prohibit the President and members of Congress from issuing Meme coins.
The founder of the Zerebro project admits to faking death to exit, marking the first occurrence of a "fake death exit" event in the crypto space.
The Trump family's WLFI project transferred over $4.5 million in assets to an unknown wallet.
New Hampshire becomes the first state in the U.S. to pass legislation on "strategic Bitcoin reserves".
Doodles announced that $DOOD will launch on Solana and initiate a 13% airdrop plan.
The People's Bank of China announced a rate cut and reserve requirement ratio reduction, and the financial market responded positively.
sns.sol announced the SNS token economics: Airdrop accounts for 40%
The listed company KULR Technology increased its holdings by 42 Bitcoins, bringing the total holdings to 716.2 Bitcoins.
The listed company DeFi Development increased its holdings by 82,404 SOL, with total holdings surpassing 400,000 coins.
Conflux will burn 76 million CFX and stake 500 million CFX.
The listed company SOL Strategies announced the purchase of 122,524 SOL.
Haedal has launched a buyback plan aimed at directly using protocol revenue to reward veHAEDAL stakers.
The UK's Economic Secretary to the Treasury has made it clear: There will be no attempt to emulate the United States in establishing a national cryptocurrency reserve.
Two new wallets have withdrawn 83,000 SOL from the trading platform for staking, worth $11.97 million.
The Financial Times reported: Traders bought into Melania Trump’s token MELANIA before its launch, making a profit of 100 million dollars.
The creator of the Meme coin TRUMP has earned over $320 million in fees to date.
The Florida Strategic Bitcoin Reserve Bill has been withdrawn, exiting the state-level cryptocurrency legislative race.
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The impact of China's dual reduction policy on the Bitcoin market: BTC maintains $96,000 under the global financial game.
Global Financial Rhythm Game: China's Dual Reduction Policy, Bitcoin Market Fluctuation, and the Eve of the Federal Reserve Decision
Market Observation
With China's announcement of RRR and interest rate cuts and confirmation of economic and trade talks with the United States, risk appetite sentiment in global markets has rebounded significantly. Pan Gongsheng, governor of the People's Bank of China, announced a 0.5 percentage point cut in the reserve requirement ratio, a 0.1 percentage point cut in the policy rate to 1.4%, and a 0.25 percentage point cut in the interest rate on the housing provident fund. This policy adjustment has a synergistic effect on the announcement by the Chinese Foreign Ministry that Vice Premier He Lifeng will hold economic and trade talks with U.S. Treasury Secretary Bessant during his visit to Switzerland from May 9 to 12, driving a general rally in Asian stock markets and higher commodity futures prices such as iron ore and steel.
At the same time, global markets are keeping a close eye on the Federal Reserve's upcoming interest rate decision, which will be announced at 2 a.m. tomorrow. According to the statistics of the data platform, despite political pressure to cut interest rates, the market expects that the probability of the Fed keeping interest rates unchanged in May is as high as 96.9%, and the probability of a rate cut is only 3.1%. Economic analysts pointed out that at present, the Federal Reserve has set a higher threshold for interest rate cuts, and policymakers need to see more convincing evidence of an economic slowdown before acting, especially hard data such as rising unemployment and weak wage growth, which is clearly weakening in the labor market.
New Hampshire officially signed HB 302, becoming the first state in the United States to pass "strategic bitcoin reserves" legislation, authorizing state treasurers to purchase bitcoin or digital assets with a market value of more than $500 billion, with a maximum position of 5% of total reserve funds. In contrast, Emma Reynolds, the UK's Secretary of State for the Economy, has indicated that the UK will not follow the example of the US in building a national crypto reserve, but prefers to include crypto assets in the existing financial regulatory framework, adhering to the principle of "same risk, same regulation".
! [Trading moment: On the eve of China's "double decline", bitcoin shock, and the Federal Reserve's interest rate decision, who is controlling the global financial rhythm?] ](https://img.gateio.im/social/moments-a71b12e903096d4581388fc012906ef8)
The price of bitcoin has been volatile for two weeks, and the data analysis agency pointed out that the price of bitcoin may face significant selling pressure as it approaches $99,000, and market analysts further said that the current key support levels for BTC are $92,500 and $89,000, and the market has returned to the key resistance zone between December and February. If it falls below $90,000, it will have a big impact on the technical and psychological level, and it may fall below the 200-day moving average. Industry veterans are optimistic in recent interviews, predicting that Bitcoin's current cycle could be between $500,000 and $1 million, and are optimistic about the prospect of combining blockchain with AI, scientific research and other fields.
It is worth noting that the MEME market has fluctuated violently in the past two days due to the "death" of Zerebro's co-creator Jeffy Yu, and the market value of its related token LLJEFFY once soared to $31 million, and has now recovered to $5.7 million. Since 1:48 p.m. on May 4th, LLJEFFY's development wallet and multiple associated addresses have begun to frequently trade and burn tokens, and today it was finally confirmed that Jeffy Yu faked the news of his death. With the truth revealed, this market-rending event may come to an end, but it is also a wake-up call for crypto market investors.
Key Market Data (as of May 7, 12:00 HKT)
Bitcoin: $96,523.49 (Year-to-date +3.21%), Daily spot trading volume $29.36 billion
Ethereum: $1,827.47 (Year-to-Date -45.11%), Daily Spot Trading Volume is $13.78 billion
Market Sentiment Index: 67 (Greed)
Average Network Fee: BTC 1 sat/vB, ETH 0.44 Gwei
Market Share Distribution: BTC 64.2%, ETH 7.4%
24-hour Trading Volume Ranking: LAYER, XRP, Bitcoin, MOVE, LOOM
24-hour Long/Short Ratio: 1.0517
Sector Performance: The NFT sector fell by 2.96%, and the GameFi sector fell by 2.83%.
Liquidation Situation: A total of 1,135,385 people worldwide were liquidated, with a total amount of $314 million, of which $98.26 million in BTC, $67.67 million in ETH, and $10.31 million in SOL.
BTC Technical Analysis: Upper channel line (95261.41 USD), lower channel line (93375.05 USD)
ETH Technical Analysis: Upper channel line (1811.27 USD), lower channel line (1775.40 USD)
*Technical analysis explanation: When the price is above the upper and lower bounds, it indicates a medium to long-term bullish trend; conversely, it indicates a bearish trend. When the price is within the range or repeatedly passes through the cost range in the short term, it indicates a bottoming or topping state.
! [Trading moment: On the eve of China's "double decline", bitcoin shock, and the Federal Reserve's interest rate decision, who is controlling the global financial rhythm?] ](https://img.gateio.im/social/moments-2af7ddcf83b74a2c43435b241201e600)
ETF Fund Flow (as of May 6)
Today's Market Outlook
Ethereum will undergo the Pectra upgrade on May 7 at 18:05.
Jito (JTO) will unlock 11.3 million tokens on May 7, valued at approximately 20.4 million dollars.
Ethereum Name Service (ENS) will unlock 1.45 million tokens on May 8, worth approximately 26.2 million dollars.
The United States will announce the Federal Reserve interest rate decision on May 8 at 2:00 ( upper limit )
The UK will announce its central bank interest rate decision on May 8 at 19:00.
The United States will release the initial jobless claims for the week ending May 3 at 20:30 on May 8.
Top 500 Market Cap Daily Gains: KAITO increased by 31.81%, BAN increased by 21.75%, SYRUP increased by 15.93%, REX increased by 13.63%, SHFL increased by 12.34%.
Market Hot News
U.S. senators have introduced the MEME Act, which aims to prohibit the President and members of Congress from issuing Meme coins.
The founder of the Zerebro project admits to faking death to exit, marking the first occurrence of a "fake death exit" event in the crypto space.
The Trump family's WLFI project transferred over $4.5 million in assets to an unknown wallet.
New Hampshire becomes the first state in the U.S. to pass legislation on "strategic Bitcoin reserves".
Doodles announced that $DOOD will launch on Solana and initiate a 13% airdrop plan.
The People's Bank of China announced a rate cut and reserve requirement ratio reduction, and the financial market responded positively.
sns.sol announced the SNS token economics: Airdrop accounts for 40%
The listed company KULR Technology increased its holdings by 42 Bitcoins, bringing the total holdings to 716.2 Bitcoins.
The listed company DeFi Development increased its holdings by 82,404 SOL, with total holdings surpassing 400,000 coins.
Conflux will burn 76 million CFX and stake 500 million CFX.
The listed company SOL Strategies announced the purchase of 122,524 SOL.
Haedal has launched a buyback plan aimed at directly using protocol revenue to reward veHAEDAL stakers.
The UK's Economic Secretary to the Treasury has made it clear: There will be no attempt to emulate the United States in establishing a national cryptocurrency reserve.
Two new wallets have withdrawn 83,000 SOL from the trading platform for staking, worth $11.97 million.
The Financial Times reported: Traders bought into Melania Trump’s token MELANIA before its launch, making a profit of 100 million dollars.
The creator of the Meme coin TRUMP has earned over $320 million in fees to date.
The Florida Strategic Bitcoin Reserve Bill has been withdrawn, exiting the state-level cryptocurrency legislative race.