China's liquidity injection boosts Bitcoin to $66K, a fruitful week for risk assets

Looking back on the week, both the overall stock market and cryptocurrency performed well. Following the Federal Reserve's initiation of an interest rate cut cycle and China's significant policy moves to release funds, the Nasdaq China Golden Dragon Index (HXC), representing Chinese concept stocks, saw a weekly increase of 23.94%. BTC broke through the 65K neckline barrier, briefly surpassing 66K. Binance founder Zhao Changpeng (CZ) confirmed his regained freedom on Friday, and BNB returned to $600.

PCE Shows Continued Decline in Inflation

On Friday, 9/27, the U.S. Department of Commerce released data showing that the Personal Consumption Expenditures (PCE) Price Index for August increased by 2.2% year-on-year, slightly lower than the market's expectation of 2.3%, and a decrease from the previous value of 2.5%. On a monthly basis, it rose by 0.1%, slightly lower than the previous 0.2%. The core PCE, which is the Federal Reserve's preferred inflation indicator excluding energy and food prices, increased by 2.7% year-on-year in August, in line with market expectations.

The PCE data indicates a continued decline in inflation. The early trading session in the U.S. stock market saw a general rise, but news that the Beijing government does not encourage Chinese companies to purchase Nvidia AI chips led to Nvidia's decline by 2.13%, dragging down the overall semiconductor sector.

However, looking back on the week, the overall stock market performance has been outstanding. Following the Federal Reserve's initiation of interest rate cuts and China's significant fund release policies, the Nasdaq Golden Dragon Index (HXC) representing Chinese concept stocks surged by 23.94% in a week.

China's aggressive stimulus measures! The largest economic stimulus package since the epidemic outbreak provides a short-term remedy

BTC Breaks Through the 65K Neckline Barrier

With optimistic market sentiment spreading, cryptocurrencies also saw a general rise. Bitcoin surged to $66,498 at one point yesterday, hitting a high point since August, with a monthly increase of over 10%. According to Bloomberg data, Bitcoin has historically dropped by an average of 5.9% in September over the past ten years, making it a traditionally bearish month. Other smaller altcoins surged by over 20%, indicating that a looser financial environment is encouraging investors to take on higher risks in the cryptocurrency market.

Bloomberg: Interest rate cuts drive Bitcoin to its strongest September surge in a decade, breaking through 65K is the key

From a technical perspective, Bitcoin has indeed broken through the neckline barrier around 65K, but there are still significant obstacles ahead. Whether it can challenge the historical high of $73,798 set in March this year will require more bullish momentum.

CZ Regains Freedom, BNB Returns to $600

According to a report by the Wall Street Journal, Binance founder Changpeng Zhao, CZ, was released early on Friday. While CZ has stepped down as the CEO of Binance, as the largest shareholder and a key opinion leader in the cryptocurrency industry, his return is still highly anticipated. BNB also returned to the $600 level yesterday.

CZ, the founder of Binance, was released early on Friday, and Changpeng Zhao will once again lead the healthy development of the cryptocurrency industry

Cryptocurrency-related stocks have also performed well recently, with exchanges like Coinbase (COIN) and Bitcoin development company MicroStrategy (MSTR) seeing over 6% increases yesterday, with weekly gains reaching 11% and 19%, respectively.