The global market holds its breath for the Fed's decision: the crypto market stabilizes in sync, and Bitcoin is gearing up to challenge $120,000.

On the eve of the Fed's highly anticipated interest rate decision, a nine-day rally came to an abrupt halt, with Asian stock markets generally consolidating on Wednesday as investors remained cautious. Meanwhile, the cryptocurrency market also showed signs of stability, with major digital assets consolidating above key support levels, waiting for the emergence of macroeconomic catalysts.

Asian stock markets and commodity markets

MSCI Asia-Pacific Index fell slightly by 0.1%, while Chinese tech stocks in the Hong Kong market rose against the trend to their highest level in four years, thanks to optimistic sentiment towards artificial intelligence prospects. Baidu's stock price surged by 13% after being upgraded by brokers. Meanwhile, gold prices maintained recent gains above 3,700 USD/ounce, bolstered by a weaker dollar. The index measuring the dollar hovered around its lowest level since March 2022. In Asia, the market will also focus on Japan's 20-year government bond auction, as political uncertainty and persistent fiscal risks put pressure on longer-term bonds.

The US retail sales data released on Tuesday was strong, but it failed to shake the market, with all attention focused on the Fed meeting. Investors are looking for clues about the interest rate path in the coming months, and some bond traders have even increased options bets, believing that the Fed will cut rates by at least 50 basis points. Market analyst Josh Gilbert from eToro in Sydney wrote: "Before the Fed's decision is announced tonight, the market remains in a wait-and-see mode. The biggest risk is that the Fed's dovish stance is below market expectations."

In terms of Chinese technology stocks, Arete Research upgraded Baidu's stock rating from "Sell" to "Buy", stating that its new internal chip business has the potential to offset the struggling online advertising business, leading to a rise in Baidu's stock price. After mentioning the latest artificial intelligence model, Goldman Sachs also raised Alibaba's target price and increased its valuation of the company's cloud computing business, resulting in a 4% increase in Alibaba's stock price.

In other market sectors, U.S. Treasury bonds continue to rise, with the two-year Treasury yield stable at 3.51%. Following the attack on Russian oil infrastructure in Ukraine, oil prices have stabilized after rising for three consecutive days.

At the same time, the money market has fully absorbed the Fed's interest rate cut of 25 basis points and a series of cuts expected in the next year. Australia's IG market strategist Tony Sycamore wrote: "We expect Chairman Powell's speech to lean dovish, emphasizing the increasing downside risks in the labor market, and stating that he is willing to cut rates further if these risks persist."

Company News

Tencent Holdings Limited completed its first bond sale in four years on Tuesday, raising 9 billion yuan ( 1.27 billion dollars).

Chery Automobile Co., Ltd. is seeking to launch an initial public offering in Hong Kong, aiming to raise up to HK$9.1 billion (US$1.2 billion), signaling a busy listing season for the Hong Kong financial center.

Microsoft, OpenAI and other American companies announced plans to invest billions of dollars in the UK for technology infrastructure development, as part of a series of business deals coinciding with President Trump's visit to the UK this week.

According to an agreement that President Trump will discuss with China this week, TikTok's business in the United States will be acquired by a consortium that includes Oracle, Andreessen Horowitz, and the private equity firm Silver Lake Management LLC.

Santander Bank in Spain has launched cryptocurrency trading services in Germany through its digital bank Openbank, offering trading for Bitcoin, Ethereum, Litecoin, Polygon, and Cardano. More tokens and features will be added in the future.

Circle collaborates with Hyperliquid to integrate native USDC and CCTP V2 onto HyperEVM to enhance developer tools. Circle has also invested in HYPE and may become a system validator, indicating a long-term partnership.

Crypto Assets market stabilizes, key resistance level approaching

The total market capitalization of Crypto Assets (TOTAL) and Bitcoin (BTC) is showing signs of stability. Following closely is MYX Finance (MYX), which has become the best-performing altcoin in the past 24 hours.

Crypto Assets Market Total Market Capitalization: After a $38 billion rise in the past 24 hours, the total market capitalization of the crypto assets market is currently $3.99 trillion. The total market capitalization continues to trade below the $4.01 trillion resistance level, which remains a key barrier to further rises in the short term. If broader market sentiment remains positive, the total market capitalization may break through this resistance. Successfully turning $4.01 trillion into a support level will bolster investor optimism and reinforce bullish momentum.

Bitcoin Price: The current price of Bitcoin is 116,675 dollars, firmly holding above the 115,000 dollar support level. The king of cryptocurrencies is facing immediate resistance at 117,261 dollars, which is a key barrier to maintaining the current rising trend in the short term. Looking ahead, whether Bitcoin can climb to 120,000 dollars will heavily depend on broader market sentiment. Only if BTC successfully converts 117,261 dollars into a support level can it sustain a strong rebound, which would encourage further capital inflow and significantly boost investor confidence.

MYX Finance Tries to Revive: MYX price soared 45.6% in the past 24 hours, performing excellently in a sluggish market environment. Currently, the altcoin is trading at 15.69, and despite the continued volatility of major Crypto Assets, it has firmly secured the position of the best-performing token of the day.

Conclusion

On the eve of the Fed's decision announcement, global financial markets are at an important crossroads. From the fluctuations in Asian stock markets to the stability of Crypto Assets, the market is weighing macroeconomic signals against the intrinsic dynamics of the assets themselves. Investors will closely monitor Powell's speech for clues about the future path of monetary policy. This information will not only impact traditional markets but also provide critical guidance for the next steps of digital assets.