According to Woofun AI, the US consumer price index (CPI) data for October exceeded market expectations, causing severe shocks in global financial markets, and the New York stock market and digital asset market fell simultaneously. Continued concerns about inflationary pressure quickly translated into a repricing of the Federal Reserve's interest rate hike path, leading to a sell-off in risky assets. Bitcoin's price fell below the critical psychological threshold of $73,000, the tech-led Nasdaq Composite Index fell by more than 1%, and market liquidity shrank significantly amid the panic.
Looking at traditional financial markets, the deterioration in macro data directly impacted the performance of major stock indexes. As of 12:19 ET on the 10th, the S&P 500 index fell 52.49 points, or 0.70%, to 7,497.45 points; the Nasdaq Composite Index fell 285.08 points, or 1.13%, to close at 24,968.10 points; the Dow Jones 30 Industrial Average fell 249.45 points, or 0.48%, to 52,140.30 points; Russell 2000 ETF representing small-cap stocks ( IWM.US) fell 3.24 points, or 1.15%, to 279.27 points. The core macro variable driving this round of decline was a strong rebound in inflation data: the US CPI rose 0.4% year over year in October, higher than market expectations of 0.3%; the core CPI also rose 0.3%, exceeding expectations of 0.2%.
This data combination forced the market to reassess the outlook for monetary policy, and the US 10-year Treasury interest rate broke through the 5% mark. The more critical variable is the statement made by Federal Reserve official Christopher Waller, who mentioned that interest rates may be raised by up to 0.5 percentage points in December. This hawkish signal further dampened investor sentiment.
At the same time, weaknesses at the individual stock level have also exacerbated the weakness of the technology sector. Nvidia (NVDA.US) fell by more than 6% due to CEO-related disputes, which became an important micro factor driving the weakening of the NASDAQ index.
In the field of digital assets, the transmission effect of macroeconomic pressure is also significant. Bitcoin's price was reported at $72,966.65, down 2.31% from the previous day. It rebounded slightly after hitting an intraday low of $72,787, but the overall trend was still constrained by the downward trend. Other mainstream cryptocurrencies saw more significant declines: Ethereum at $2,022.17, down 4.75%; SOL at $82.23, down 4.90%; XRP at $1.04, down 4.20%; BNB at $672.45, down 2.04%; DOGE at $0.06726, down 3.68%. Privacy coins and niche currencies fluctuated more sharply, with HYPE at $71.21, down 5.37%; ZEC at $1,023.03, down 12.96%; and XMR at $554.40, down 7.04%. In contrast, TRX performed relatively steadily, with a slight increase of 0.12% at $0.3175.
According to data compiled by Woofun AI, the total market value of the entire digital asset market was 2.42 trillion US dollars, down 2.93% from the previous day; however, the transaction volume bucked the trend and rose to 70.67 billion US dollars, an increase of 15.48%, indicating that during the price decline, market trading activity was extremely active, and the long and short game was intense. The amount of digital asset liquidations in the last 24 hours was approximately $656.72 million, most of which was the liquidation of long positions, amounting to $504.1 million. The value of open positions was US$341.48 billion, an increase of 5.01%. This increase in the level of leverage suggests that there is still a possibility of increased volatility in the market.
Market analysts are wary of subsequent trends. Tom Heinlin, chief investment strategist at Bank of America (BAC.US) Asset Management, analyzed that since the upward pressure on prices continues longer than expected, the market is worried that the Fed may adopt more aggressive interest rate hikes next year. The analysis team at digital asset trading platform BitUnix believes that if pressure on service prices and energy costs persists, the strong dollar trend and high treasury bond interest rates may limit the recovery of market liquidity. Market analyst Mikael van der Poppe said on the X platform that although Bitcoin's reaction after the CPI was announced was quite good, the overall trend was still declining. He believes that only when Bitcoin can return to the key support level can it be determined whether there will be a rebound;
However, once Bitcoin bottoms out, there is a strong possibility that other cryptocurrencies will rebound. Currently, Bitcoin accounts for 60.4% of the digital asset market. The Alternative Greed and Fear Index is 24 and is still in the 'extreme fear' range. It is expected that the market will continue to fluctuate in the future, while closely monitoring price-related data and the Federal Reserve's interest rate policy trend.