August 2 Bitcoin Market Analysis

In terms of macroeconomics, although Powell was dovish in his speech in the early hours of yesterday morning, Bitcoin has adjusted independently from the US stock market and gold in the past two days. The internal reason is probably that the currency circle funds are defending today's non-agricultural employment data in advance. The US stock market has been adjusted for more than half a month since July 10, and Bitcoin has been rebounding and rising in the past half month. Therefore, Bitcoin fell independently the day before yesterday, while the US stock market rose sharply. Yesterday, the US stock market also began to weaken overnight, which is inevitably related to the non-agricultural data to be released today. The defensive actions in advance must be taken, sooner or later.

In addition, the Bank of England announced yesterday the first interest rate cut in more than four years, lowering the benchmark interest rate to 5%. Policymakers ultimately voted 5 to 4 in favor of the rate cut. The Bank of England will hold its next meeting on September 19 to discuss policy measures, and will hold two more meetings in November and December this year. The Bank of England has also fired the first shot of interest rate cuts. In the next 1-2 years, interest rate cuts will become the main theme of major central banks around the world, and market liquidity will get better and better.