Opinion: The market value of cryptocurrencies increased by 8% in September, and the macroeconomic environment may support a rise in October
According to a report released by Binance Research, in September 2024, driven by the positive development of the global economy, the monthly market value of cryptocurrencies increased by 8%. The Federal Reserve lowered interest rates to between 4.75% and 5%, improving investor sentiment.
In addition, the People's Bank of China injected one trillion yuan into the banking system to counteract deflationary pressure and boost consumer confidence. These measures supported rises in both U.S. stocks and A-shares, which in turn drove up cryptocurrency markets in October.
On September 27th, to combat deflationary pressures and a sluggish real estate market, The People's Bank of China cut its seven-day reverse repo rate by 20 basis points and reduced its reserve requirement ratio by 50 basis points. This move injected another one trillion yuan (approximately $142.5 billion) into the banking system to bolster consumer confidence.
The favorable macroeconomic environment stimulated increases in major stock markets such as those in America and China further supporting an increase for cryptocurrency markets during October; however closely monitoring future economic reports and central bank actions remains crucial.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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