Bitcoin and other cryptocurrencies were pummeled on Thursday over mounting fears the Federal Reserve would hold interest rates steady at a meeting next month. Bitcoin fell 4%, to $98,200 — its lowest value since May. Ethereum fell 8% to $3,167, its lowest value since July. The crypto crash is part of a larger rout that saw investors dump stocks across the board. The Nasdaq composite fell 2.3%. The fall was driven, in part, by concern over the Fed’s next move. Its rate cutting campaign has helped boost s ...

Core Viewpoint - The S&P 500 Index experienced mixed performance due to investor reactions to corporate earnings from major tech companies and the Federal Reserve's interest rate decision [1] Group 1: Corporate Earnings - Most of the Magnificent 7 companies reported their earnings, influencing investor sentiment and market performance [1] Group 2: Federal Reserve Interest Rate Decision - The Federal Reserve's decision on interest rates played a significant role in shaping market reactions and investor strategies [1]

Core Insights - Inflation remained elevated in September, with the consumer price index (CPI) rising 0.3% month-over-month and 3% year-over-year, up from 2.9% in August [1] - Core prices, excluding volatile food and energy costs, increased by 0.2% from the previous month and 3% year-over-year, both figures slightly below economists' expectations [2] Economic Impact - High inflation has imposed significant financial pressures on U.S. households, particularly affecting lower-income Americans who spend a larger portion of their income on necessities [3] - Food prices rose by 0.2% in September, with a year-over-year increase of 3.1%. The food at home index increased by 0.3% monthly and was 2.7% higher than a year ago, while the food away from home index rose 0.1% month-over-month and 3.7% year-over-year [4]

Core Points - Federal Reserve Governor Stephen Miran stated he made his interest rate decision independently and was not pressured by President Trump [1][2] - Miran voted against a quarter percentage point reduction, favoring a larger cut, and his projections for the fed funds rate were significantly lower than those of other Federal Open Market Committee members [2] - Concerns regarding the independence of the Federal Reserve have increased since Trump's second term began, with the president advocating for aggressive rate cuts [3] - Trump has attempted to remove Governor Lisa Cook and indicated he would evaluate Powell's replacement based on their willingness to ease monetary policy [4] - Miran dismissed concerns about potential conflicts of interest regarding his position, emphasizing his commitment to serve until January 2026 [4][5] - Miran is scheduled to speak at the Economic Club of New York, a significant platform for business and political leaders [6]

Core Points - The Trump administration is seeking to fire Lisa Cook from the Federal Reserve's board of governors ahead of an important interest rate vote [1][5] - Cook's legal team argues that the administration has not provided sufficient cause for her dismissal, highlighting potential economic risks [2][4] - This situation marks a historic attempt by a president to influence the independent Federal Reserve, with Cook being the first governor targeted for removal [3] Legal Proceedings - The Trump administration filed a response to the U.S. Court of Appeals, claiming Cook's arguments against her firing are without merit [2] - Cook has initiated legal action to block her firing, and a federal judge previously ruled that the removal was illegal, reinstating her to the board [4] Allegations and Investigations - Allegations against Cook include claims of mortgage fraud related to her property declarations, which have led to a criminal referral to the Justice Department [3][4] - The administration's justification for firing Cook is based on these allegations, although her characterization of the properties may undermine the claims [4] Economic Implications - The administration's appeal comes just before a Federal Reserve meeting where a key interest rate decision is expected, with economists predicting a quarter-point cut [5]

Core Insights - U.S. spot Bitcoin ETFs experienced a significant capital influx of $368.25 million, marking the largest single-day inflow since August 8, indicating renewed institutional investor confidence [1] - Fidelity's FBTC led the inflows with $156.50 million, followed by Ark Invest and 21 Shares' ARKB with $89.47 million, with all twelve spot Bitcoin ETFs recording inflows [1] Institutional Activity - The increase in institutional buying aligns with key macroeconomic reports, including Nonfarm Payrolls revisions, Producer Price Index, and Consumer Price Index, which are crucial for the Federal Reserve's interest rate decision on September 17 [2] - Investors are repositioning ahead of the Fed's rate decision, reflecting a strategic shift in response to anticipated monetary policy changes [2] Market Trends - A modest quarter-point rate cut was expected, but the potential for a half-point cut is generating increased interest in the crypto market [3] - Ethereum ETFs experienced a negative net flow of $96.69 million, indicating a shift in investor sentiment back towards Bitcoin as a safer investment [3][4] Volatility and Price Movements - Short-dated implied volatility for Bitcoin and Ethereum surged by 15%, suggesting that options traders are preparing for significant market movements [4] - Current trading prices show Bitcoin at approximately $112,654 (up 0.8%) and Ethereum at $4,348 (up 1.1%) [5]