CoinDesk Report:
Following dovish signals from Federal Reserve Chairman Powell, major U.S. stock indices rallied across the board on Tuesday (7/2). Tesla’s stock surged over 10%, pushing the S&P 500 to its 32nd record high close of the year. The Dow Jones Industrial Average rose by 0.41%, while the Nasdaq Composite climbed 0.84%, once again hitting historic highs. However, Bitcoin and Ether continued to lag, failing to rebound alongside the rise in U.S. stocks.
Powell Turns Dovish, Counters Strong Jobs Data
According to CNBC, Federal Reserve Chairman Powell signaled dovishness at yesterday’s (7/2) monetary policy meeting in Portugal, expressing satisfaction with inflation progress over the past year and suggesting the U.S. economy is gradually returning to a deflationary trajectory, marking significant progress on inflation concerns. However, he noted he would like to see more progress before considering rate cuts to bolster confidence.
Powell’s dovish comments offset strong job data released yesterday, as per the Job Openings and Labor Turnover Survey (JOLTS) report, which showed a higher-than-expected increase of 221,000 job openings by the end of May, reaching 8.14 million vacancies.
BTC, ETH Remain Weak, Fail to Follow U.S. Stock Gains
Cryptocurrencies showed continued weakness, with Bitcoin briefly surpassing $63,000 yesterday before retracing, failing to follow the upward trend of U.S. stocks.
Data tracked by Arkham revealed that Germany’s Federal Criminal Police Office (BKA) transferred Bitcoin once again to exchanges Coinbase, Bitstamp, and Kraken yesterday. Their Bitcoin holdings decreased from 50,000 coins on June 29 to 43,549 coins, selling a total of 6,451 Bitcoin worth approximately $400 million.
Ether followed a similar downward trend over the past 24 hours. The U.S. Securities and Exchange Commission (SEC) rejected the S-1 filing from potential Ethereum ETF issuers last Friday, requesting resubmission by July 8. The launch of a spot Ethereum ETF is thus delayed, impacting market sentiment.
TSMC, Hon Hai Outperform Bitcoin This Year
Looking at Taiwan’s stock market, TSMC saw a 64% surge in the first half of the year, while Hon Hai, driven by AI server supply chain dynamics, soared by 105%. In contrast, Bitcoin only rose by 48.75% in the first half of the year, notably trailing behind Taiwan stocks during this bullish period, underscoring the powerful impact of AI innovations.
Market Focus on Friday’s Non-Farm Payrolls Data
Today, investors will focus on the minutes from the Federal Reserve meeting, with markets closing early on Thursday ahead of the Independence Day holiday. Crucial U.S. non-farm payrolls data will be released on Friday.