US Stock Market Plunges, Bitcoin Holds Steady, Ethereum and Altcoins Showing Signs of Activity?

The U.S. stock market continues to decline, with the S&P 500 index plunging 1.18%, hitting a new low since May. Bitcoin remains stable above 34K, with a report from JPMorgan attributing BTC's recent strong performance to institutional demand. Ethereum also saw a slight increase yesterday, rising above 1,800.

US Q3 GDP Grows 4.9%, ECB Pauses Rate Hike

Yesterday, the US announced that its Gross Domestic Product (GDP) grew by 4.9% in the third quarter, marking the fastest growth since 2021, significantly higher than the 2.1% seen in the second quarter and surpassing economists' expectations of 4.7%. US Treasury Secretary Yellen pointed out that the US GDP data indicates a soft landing for the US economy, suggesting that the Federal Reserve should maintain high interest rates in the long term. The Federal Reserve will hold a rate meeting on October 31 and November 1.

The European Central Bank (ECB) announced that it would keep interest rates unchanged. This is the first time since July last year that the ECB has paused its rate hikes after raising rates 10 times in a row to assess whether the previous rate hikes have been successful in curbing inflation.

JPMorgan: Institutional Demand Driving BTC's Strong Performance

Bitcoin remains stable above 34K amid optimism that the US Securities and Exchange Commission (SEC) may approve a Bitcoin spot ETF.

According to a report from CoinDesk, JPMorgan stated in a report on Wednesday:

BTC hit a new high this year, indicating that the latest capital inflows have been driven by institutional participation.

Analysts led by Nikolaos Panigirtzoglou wrote: The Bitcoin futures positions on the CME, mainly used by institutional investors, surged in the past week, not only reaching the highest level this year but also rising to the last level before the FTX crash in August 2022.

Institutional participation in the recent rebound is also reflected in the analysis of Bitcoin flows. Large amounts of Bitcoin are flowing into larger wallets, indicating demand from institutional investors. Unlike previous quarters where the rise in Bitcoin was dominated by smaller wallets, this time it is more driven by retail investors.

The report noted that, in contrast, CME's Ethereum futures positions have not risen.

ETH Slightly Up, Is Arthur Hayes' BTC→ETH→Altcoins Theory Coming True?

However, Ethereum also saw a slight increase yesterday, reaching up to $1,865. Will funds indeed shift from US bonds to cryptocurrencies as predicted by BitMEX co-founder Arthur Hayes, with the sequence starting from Bitcoin, followed by Ethereum, and then heating up with altcoins?

BitMEX Co-founder: Bitcoin's Surge is not Due to Spot ETF, but Related to US Bonds