PPI Boosts Rate Cut Hopes, U.S. Stocks Rally, BTC Surpasses 60K, ETH Holds Steady at 2,700

Due to the solidified hope of a Fed rate cut in September following the U.S. producer price data, the three major U.S. stock indices surged, with BTC surpassing 60K and ETH holding steady at 2,700. Investors will be awaiting the Consumer Price Index (CPI) data on Wednesday and retail sales data on Thursday to understand the further direction of the Fed's policy measures.

PPI Shows Continued Cooling of Inflation

The U.S. Producer Price Index (PPI) for July was released yesterday, showing a 0.1% increase compared to the previous month, lower than expected, as a decline in service prices suppressed the rise in commodity costs, indicating a continued cooling of inflation. Investors are also awaiting the Consumer Price Index (CPI) to be released on Wednesday and retail sales data on Thursday to understand the further direction of the Federal Reserve's next policy moves.

The three major U.S. stock indexes surged, with Nvidia rising over 6%, leading to a broad rally in semiconductor stocks. Investors are looking forward to Nvidia's upcoming earnings report on the 28th to see if it will bring a stronger catalyst for AI.

Asset management companies are optimistic about the future of U.S. stocks: last week's seasonal volatility, market not overheated, and no tech stock bubble.

BTC Surpasses 60K

Bitcoin surged to above 61,500 yesterday. Tesla founder Elon Musk and former U.S. President and Republican presidential candidate Donald Trump engaged in a century-long conversation on Twitter X, with no mention of cryptocurrencies. The recent rise in approval ratings for Vice President Kamala Harris has also cooled the FOMO sentiment in the community.

Millions tuned in! Musk talks to Trump: Ban illegal immigration, Biden causes world turmoil, strongman politics ensure America's future.

However, BitMEX founder Arthur Hayes stated that he won't bet on who will win the presidency, but rather on when liquidity will be released. He remains bullish on Bitcoin's target price reaching a million dollars.

Arthur Hayes: Yen to 100, Bitcoin to a million, and the shitcoin spring will also come.

ETH Holding Steady at 2,700

Ethereum (ETH) has been relatively stable recently, with the crypto market gradually stabilizing. Grayscale's Ethereum Trust (ETHE) successfully ended its net outflows since conversion. CoinShares, an asset management company, stated that during the market recovery phase from last week to this week, Ethereum's fund products seem to be more attractive to investors compared to Bitcoin.

Grayscale ETHE Ends Net Outflows! CoinShares: Investors Prefer ETH Trading Products over BTC