Super Central Bank Week Begins, Trump Effect Causes Bitcoin to Break Through $70,000 Barrier

Yesterday, the US stock market saw mixed movements. This week marks a super central bank week, with the US, Japan, and UK central banks set to announce interest rate decisions on Wednesday and Thursday. Republican presidential candidate Trump's remarks embracing Bitcoin over the weekend boosted Bitcoin's performance. BTC briefly surpassed the $70,000 mark yesterday but later retreated, trading at $66,888 before the deadline. Ethereum, on the other hand, remained stable around $3,300.

Super Central Bank Week

This week marks the Super Central Bank Week, with the Federal Reserve, Bank of Japan, and Bank of England set to announce their interest rate decisions on Wednesday and Thursday.

The Federal Reserve is expected to maintain its interest rates unchanged when it announces its decision early on August 1st (Taiwan time). However, Chairman Powell's press conference following the decision may provide clues about potential future rate cuts.

The Bank of Japan (BOJ) announced the end of negative interest rates in March this year and started reducing its balance sheet in June. BOJ Governor Kuroda said that if underlying inflation accelerates towards the 2% target considering the Consumer Price Index (CPI) and broader price indices, they will consider raising the current near-zero interest rates. The BOJ will hold a policy meeting on Tuesday and Wednesday this week. There are two main market views: one suggests a 10 basis point rate hike with a minor reduction in bond purchases, while the other suggests no rate hike but a significant decrease in bond purchases. Both scenarios signal a tightening of monetary policy.

As Japan prepares for a rate hike, will retirement funds shift from overseas to domestic investments, marking the end of the era of a cheap yen?

The Bank of England will also announce its interest rate policy on Thursday, with differing opinions in the market on whether it will cut rates for the first time post-pandemic.

Bitcoin Surges Above $70,000 Mark

During the Bitcoin 2024 conference over the weekend, Republican presidential candidate Trump's remarks embracing Bitcoin from a government perspective uplifted the cryptocurrency community. This sentiment boosted Bitcoin, pushing it briefly above the $70,000 mark yesterday before retracing. As of the time of reporting, it stands at $66,888.

Interpreting Trump's speech | The perfect fusion of Bitcoin and political discourse, the convergence of pain points in the crypto sphere and American glory

Ethereum Returns to $3,300

Ethereum also rose above $3,300 yesterday following Bitcoin's surge. Despite the Grayscale Ethereum Trust's (ETHE) outflow of nearly $210 million, ETH remains stable above $3,300.

Understanding the reasons behind ETHE's urgency to sell?

This week will also see the release of the latest financial reports from the seven giants of the U.S. stock market, Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Meta (META), and the U.S. cryptocurrency exchange Coinbase (COIN). We will continue to provide updates on these developments.