Market Review: Technological Innovation Drives Market Upward, Crypto Assets Welcome New Spring Market

Economic Data Triggers Inflation Concerns

Recently, the economic data from the United States has performed well, raising concerns in the market about a resurgence of inflationary pressures. In January, non-farm payrolls saw a significant increase of 353,000, marking the largest increase in nearly a year. Following this, the January CPI rose by 3.1% year-on-year, exceeding the expected 2.9%. The core CPI also increased by 3.9% year-on-year, surpassing the expected 3.7%. These data have led to a delay in market expectations regarding the timing of the Federal Reserve's interest rate cuts, with a general belief that the first rate cut may only occur in June.

Manufacturing data also shows strong signs of recovery. The February Markit Manufacturing PMI preliminary value reached 51.5, remaining above the growth line for two consecutive months. The number of manufacturing orders hit a nearly two-year high, suggesting that the United States may be entering a new round of inventory cycles. Nevertheless, the market generally believes that the likelihood of the Federal Reserve continuing to raise interest rates is low. Although the current economic situation is accompanied by some inflationary pressure, it has not hindered the rise of stocks and Crypto Assets, reflecting the market's optimistic attitude towards the future economic outlook.

Breakthroughs in Artificial Intelligence Technology Propel Tech Stocks Surge

The most noteworthy event in the tech field this month is the release of OpenAI's text-to-video tool, Sora. The high-quality videos generated by this tool have sparked heated discussions online, with its stunning image quality and smoothness. The emergence of Sora signifies that the content creation and media industry may face significant changes, with the potential to greatly enhance video production efficiency and reduce costs.

Meanwhile, the financial report data released by NVIDIA exceeded market expectations. Revenue in the fourth quarter increased by 265% year-on-year to $22.1 billion, and net profit skyrocketed by 769% to $12.3 billion. The company also expects revenue to reach around $24 billion in the next quarter. These impressive figures propelled NVIDIA's stock price to surge, making it briefly the third largest company by market capitalization in the U.S.

It is worth noting that the preference of the younger generation of investors for technology stocks is becoming increasingly evident. Data shows that among American teenage investors, the most favored are technology stocks represented by the "Big Seven." This trend indicates that driven by new technologies such as AI, tech giants and emerging asset classes are likely to attract more investors, gradually becoming mainstream investment targets.

Bitcoin Breaks $61,000 Spot ETF Leads Spring Festival Market

During the Spring Festival, the price of Bitcoin surged significantly, climbing from around $43,000 on February 8 to a peak of over $61,000. This wave of increase was mainly driven by two factors: first, the weakening of Grayscale's selling pressure, and second, the continuous inflow of funds into Bitcoin spot ETFs.

As of February 26, 11 ETFs have accumulated a net inflow of $6.15 billion, with the market capitalization of coins held accounting for 3.81% of the total market value of Bitcoin. Among them, BlackRock's IBIT had a single-day trading volume that once exceeded $1.3 billion, demonstrating an astonishing growth rate. In addition, institutional investors such as MicroStrategy are continuously increasing their holdings of Bitcoin, further boosting market demand.

With the approval of the Bitcoin ETF, market attention towards the Ethereum spot ETF is also increasing. Currently, several institutions have submitted applications for the Ethereum ETF, with the most critical decision date being May 23. If the Ethereum ETF is approved, it will bring new sources of funds and investor groups to the Crypto Assets market.

Recently, the Bitcoin community has also released Layer2 standards aimed at standardizing the expansion applications of the Bitcoin network. These standards ensure Bitcoin's core position in the expanded network and help maintain its value attributes as "digital gold."

Despite the rebound in inflationary pressures, the market continues to maintain an upward momentum driven by new technologies like AI. Whether Bitcoin can break through its historical high of 69000 dollars will be a focal point of attention for investors. As the Crypto Assets market continues to mature, we have reason to remain optimistic about its long-term development.