Tesla's strong 20% surge boosts the market, Bitcoin back to $68K
Encouraged by outstanding financial reports and prospects, Tesla's stock price surged by 22% on Thursday, marking its best single-day performance since 2013. The US stock market rebounded, with the S&P 500 index rising by 0.21%, ending a three-day decline. Bitcoin followed the upward trend in the US stock market, trading at $68,196 at the time of writing, with a gain of over 2% in the past 24 hours. Ethereum, on the other hand, has shown weakness recently, hovering above $2,500.
Tesla did not sell Bitcoin, and its third-quarter profits saw a significant increase.
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U.S. Economy in "Goldilocks" Ideal State
Yesterday, the initial weekly jobless claims unexpectedly dropped to 227,000, while continued claims rose to nearly a three-year high. The Federal Reserve may need to adjust its assessment of recent data due to distortions from Hurricane Helen.
Another report from S&P Global noted that the U.S. Composite PMI output index, tracking both manufacturing and services, rose from September's final reading of 54.0 to 54.3 this month, driven by growth in the services sector, indicating expansion as a reading above 50 signals industry growth.
According to the CME Group's FedWatch tool, investors are pricing in a 97% probability of a 25 basis point rate cut at the Fed's meeting on 11/7, significantly higher than the 41.8% probability a month ago. The market perceives the current U.S. economic conditions as "Goldilocks," not too hot and not too cold, prompting the Fed to opt for gradual rate cuts to lower corporate borrowing costs.
Bitcoin Surpasses 68K, Ethereum Shows Weakness
Bitcoin rallied alongside U.S. stocks, reaching $68,196 at the time of writing with a 24-hour gain of over 2%. Short-term observation is needed to see if the $70,000 milestone can be maintained.
Ethereum has shown weakness recently, hovering above $2,500. The SOL/ETH exchange rate hit an all-time high, with KOL Ignas noting that as traditional financial capital flows into Bitcoin, many long-term holders are beginning to shift ETH to new tokens as its performance fails to attract enough attention.
Solana, on the other hand, surged in price due to the AI meme trend, with protocol revenue soaring.
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