BlockBeats News, September 24th, according to BiyaPay analysts, the U.S. financial market has released a new stress signal. New York Fed data shows that on Monday, the U.S. federal funds effective rate rose by 1 basis point, from 4.08% to 4.09%, still within the 4%–4.25% range set by the Federal Reserve, but this is a rare upward movement since the current policy cycle.
Analysts pointed out that this change reflects a faster-than-expected decline in excess reserves held by commercial banks and foreign institutions, indicating a tightening market liquidity. As a result, federal funds futures contracts experienced selling pressure on Monday, with a trading volume close to 300,000 contracts, and prices for the September contract significantly declined. Goldberg, Director of Strategy at DWS, stated that early signs of pressure on interest rates have appeared, and the Federal Reserve may need to pay closer attention to market dynamics.
At the same time, both the U.S. stock market and the crypto market are under pressure at high levels. Powell has warned today that stock market valuations are high, and further liquidity tightening exacerbates risks. The three major U.S. stock indexes collectively trended lower, and Bitcoin also dropped to the $111,000 level. Canavan, an analyst at Oxford Economics, emphasized that although a 4.09% interest rate is not yet alarming, the rise in repo rates and the decrease in reserves have already sounded the alarm for a tightening monetary environment.
BiyaPay analysts believe that in the context of a tightening macro environment and increased volatility in risk assets, investors need to pay more attention to cross-market asset allocation. BiyaPay provides zero-fee spot and derivatives trading, and supports users to invest in U.S. and Hong Kong stocks using USDT, helping investors be flexible in coping with liquidity tightening cycles and seizing new global market opportunities.
