The Crypto Market is on the Rise Again

The crypto market cap added another 1.5% overnight to $1.34 trillion as the corrective reset quickly turned to buying. Bitcoin is up 2%, while Solana and Chainlink are up 6%. This pair also led the gains over the past 30 days, indicating robust demand for them. In contrast, BNB loses 0.6% in 24 hours and adds 17% in 30 days.

Is the Geopolitical Rally in Gold Exhausted?

On paper, last week had all the elements to be incredibly bullish for gold. Yields on US government bonds came crashing down, which in turn inflicted heavy damage on the US dollar. Both of these developments are normally positive for gold prices, and yet the precious metal was unable to advance. 

JPY Weakness

Bank of Japan chair Ueda reiterated that the central bank will keep easy policy until inflation target is in sight, while adding that the order of the normalisation process for the yield curve control and negative interest rate policies had not been decided yet.

Houston, We Have a Problem

US bond traders are getting ahead of themselves, and it’s about to become a serious problem for the Federal Reserve’s (Fed) ‘last mile’ efforts – as the Fed officials should think carefully how to contain a too-early and too-high optimism from the bond markets – which will unwantedly loosen the financial conditions in the US before the Fed reaches its 2% inflation goal.

BTC/USD Analysis: New High of the Year

This is fueled by pending approval of Bitcoin ETF applications pending before the SEC. According to the latest information, SEC representatives are in contact with the Grayscale fund, one of those who submitted applications. This increased confidence that applications would be approved. Moreover:

Aussie Halts Slide, RBA Statement Next

The Reserve Bank of Australia will release its quarterly monetary policy statement on Friday. Investors will be looking for insights about the RBA’s rate policy, after the central bank increased rates on Tuesday by a quarter point to 4.35%, a 12-year high. It was the first rate hike by Governor Michelle Bullock and came after four consecutive pauses.

Seasonality on Bitcoin's Side in November

October was the second best-performance month for Bitcoin this year after January. BTC soared 27% to highs over the past year and a half above $34K.

Fed Needs to be Seriously Hawkish to Avoid More Hikes

The rate decision and the Fed’s comments promise to be the highlight in a week full of releases. The market is in no doubt that the pause in policy tightening is here to stay, with interest rate futures pricing in a near 100% probability of a hike. Comments from Fed officials in recent weeks have removed all intrigue, showing a consensus for keeping policy on hold to gather more data.

ISM Shows U.S. Manufacturing Sector Contraction Accelerated in October

The October ISM Manufacturing Index fell to 46.7, from 49.0 in September, falling short of the 49.0 markets had expected. This month's contraction was broad based with only two industries reporting growth.

Fed Review: Still on Track

Powell delivered a balanced message with dovish undertones, as even the statement made it clear that the Fed is now closely following changes in financial conditions. Powell emphasized, that the rise in long-end yields needs to be both persistent and driven by higher term premium to influence monetary policy, but also that policy is already restrictive today.