On Friday, Bitcoin manages to reclaim the $80,000 mark once again. Investors seem to have shaken off the disappointment over the latest bad news from the US. This suggests that investors have likely put the recent setback in the US Senate behind them. On Tuesday evening, the US Senate had effectively put the so-called „Clarity Act“ on ice.
Bitcoin
Following interest rate hike by US central bank – Bank of Japan follows suit
As expected, the US Federal Reserve (Fed) raised its key interest rate by 25 basis points late Wednesday evening to a range of 3.75 to 4.00 percent. At the same time, Fed Chair Kevin Warsh signaled a certain resilience and a clear monetary policy stance, which investors evidently welcomed.
The Japanese central bank, the Bank of Japan (BoJ), has raised its key interest rate by a quarter of a percentage point to its highest level in 31 years. The interest rate now stands at 1.25 percent. In doing so, the BoJ pointed to rising inflation expectations in light of the situation in the Middle East, increasing demand in the AI sector, and developments in exchange rates. Investors had anticipated a rate hike beforehand. However, two members of the BoJ committee voted against the move, which likely allayed overall concerns about further rate hikes and thus served as a „dovish“ signal.
Outlook: Monetary policy likely to remain a topic – Trump-Xi meeting in focus
Monetary policy developments in the US (Fed), the Eurozone (ECB), and Japan (BoJ) are likely to continue to provide plenty of material for discussion. In this context, the performance of US Treasury bonds is also likely to be closely watched. US national debt stood at over 40 trillion dollars at the beginning of September.
A meeting between US President Donald Trump and Chinese leader Xi Jinping planned for next week is also likely casting its shadow ahead.
