US stocks continue to rise, Bitcoin falls below 27K, and long-term bond yields staying high are equivalent to a rate hike.

Yesterday, the U.S. stock market rose for the fourth consecutive day, oil prices slightly declined, but Bitcoin fell below short-term support last night, hitting a low of 26,538.

Fed Officials Turn Dovish, Maintaining High Long-Term Bond Yields Is Equivalent to Rate Hikes

Yesterday, the Federal Reserve released the minutes of its September meeting. While officials held differing views on the need for further rate hikes in the future, they all agreed to proceed cautiously with rate decisions, maintaining high interest rates for a period of time. They also agreed that each meeting's policy decisions would be based on comprehensive information, taking into account their impact on economic outlook and risk balance.

However, in recent days, Federal Reserve officials have been increasingly dovish, with several officials indicating that if long-term interest rates remain near recent highs and inflation continues to cool, they may no longer need to raise short-term rates. Since U.S. Treasury yields have always been a key benchmark for the lending market, maintaining high long-term bond yields increases borrowing costs, effectively achieving the same effect as a Fed rate hike.

Even prominent Wall Street Journal reporter Nick Timiraos noted:

The sustained rise in long-term bond yields could lead to an anticlimactic end to the Fed's historic rate hike cycle!

Oil Prices Slightly Retreat, PPI Surges Beyond Expectations

Yesterday, the U.S. Department of Labor reported that the Producer Price Index (PPI) for September exceeded expectations, primarily due to rising energy costs. The September PPI rose by 2.2% year-on-year, higher than the market's expected 1.6% and the revised previous value of 2.0%, marking the highest level since April this year. Excluding volatile food and energy prices, the core PPI for September increased by 2.7% year-on-year, also surpassing the market's expected 2.3% and the revised previous value of 2.5%.

After a 4% surge in oil prices on Monday, traders began to worry that the conflict between Israel and Hamas could lead to new sanctions against Iran. However, oil prices slightly declined on Tuesday after Iran denied involvement in the conflict.

Bitcoin Falls Below 27K

Bitcoin dropped below the 27K mark last night, hitting a low of 26,538. The Israel-Palestine conflict did not drive Bitcoin to perform like digital gold; instead, Bitcoin broke below short-term support last night. According to Coinglass data, a total of 22,549 people were forced to liquidate within the past 24 hours, totaling 65.09 million USD. Of these, Bitcoin liquidations amounted to 26.37 million USD, while ETH liquidations reached 12.39 million USD.