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- Top cryptocurrencies rebounded through October 25th.
- Equity markets show a significant spike.
- BTC crossed the $20k mark, last crossed on Oct. 07th.
Earnings reports of multiple blue chip companies and expectations that the Fed would stop raising rates or even slash rates caused the equity markets to rally. Crypto markets followed suit. Here’s all you need to know about what unfolded in the market during October 25th through today.
How much did stocks and cryptos rally?
The following paragraphs mention percentage increases before selling pressures were encountered. Prices at press time were completely different and do not represent the new prices as per percentage increases mentioned below. Essentially, multiple assets registered more than 3 green candles.
The Dow Jones Industrial Average (DJI) increased by 1.1% while Nasdaq Composite rose by 2.3%.
Bitcoin (BTCUSD) rebounded by 5.7% at 6:00 am ET. Ethereum’s (ETCUSD) price rose around the same time albeit the rise was higher than BTC: 13.21% to $1525. Bitcoin crossed the $20,000 mark for the first time since October 7th. At press time, BTC was trading at $20,611; ETC was trading at $1529.
Among altcoins, Cardano (ADAUSD) registered 19.32% to $0.43 growth while Polkadot (DOTUSD) rallied by 11.22% to $6.6215 before encountering selling pressure. At the time of writing, ADA was trading at $0.404 and DOT was trading at around $6.5.
Why are markets bullish
First, multiple big companies reported healthy earnings for the third quarter of this year. These include Coca-Cola, General Motors, General Electric, Microsoft, and Alphabet. Coca-Cola reported higher than expected profits and revenue; General Motors crossed profit expectations but fell short on revenue; General Electric reported profits lower than previous quarter; Microsoft topped profit and revenue expectations; and Alphabet, the parent company of Google, fell short on profit and revenue expectations because of lower-than-expected YouTube revenue and Traffic Acquisition Costs. Essentially, despite macroeconomic and geopolitical headwinds, spending is not taking a hit.
Second, the Federal Reserve is expected to reconsider its rate hike mission given that macroeconomic indicators like inflation, interest rates and the housing market are indicating poor economic health.
US inflation rate rose by 8.2% since last September, a marginally drop from the year ending August. Nevertheless, the rate is far higher than the Fed’s mandate of 2%. In the US, houses are getting expensive albeit the rate of increase in prices is falling gradually.
Nomi Prins told a major finance news firm that the Fed has a third unofficial mandate of boosting markets. The official mandate of the Fed is to ensure maximum employment and price stability. While the labor market looks strong, the rate hike spree is increasing unemployment. The number of unemployment claims reported for the previous month were significantly higher.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
