According to James Butterfill, head of research at crypto asset management company CoinShares, investors' appetite for stablecoins is closely related to the US dollar because their face value is always calculated in US dollars. The main reason for the surge in stablecoin trading volume last year was the significant increase in interest rates by the Federal Reserve, which stimulated a sharp rise in the US dollar. In fact, not all stablecoins have performed poorly, and USDT, which is linked to the US dollar, is a rare exception. The market value of USDT reached a historical high of $83.8 billion in August last year. However, due to the decoupling of Terra USD and Binance's BUSD last year, the world's largest and second-largest stablecoins, USDT and USDC, fell below the $1 exchange rate. At the same time, several small and medium-sized banks in the United States, including SVB, collapsed at the beginning of this year, and market risk aversion increased, causing investors to stay away from virtual currency assets. Dante Disparte, global strategy chief and chief strategist of Circle, said that the global risk of de-dollarization is due to the impact of the crisis of small and medium-sized banks in the United States, and it is estimated that the stablecoin adjustment period will continue. 

Federal Reserve's Bullard stated that he predicts the US will not experience an economic recession; he may support maintaining the current interest rate level for about 8-10 months; credit is clearly tightening, and more tightening effects will appear; it is expected that inflation will cool down next year, and the Federal Reserve may consider cutting interest rates in the future.

According to the exchange contract display, it is expected that the Federal Reserve will cut interest rates by more than 100 basis points in 2024. <br>

Probability that the Federal Reserve will maintain interest rates in the range of 5.25%-5.50% in December is 80.2%, while the probability of raising interest rates by 25 basis points to the range of 5.50%-5.75% is 19.8%. The probability of maintaining interest rates unchanged until January next year is 71.9%, with a probability of cumulative interest rate hikes of 25 basis points at 26.0% and a probability of cumulative interest rate hikes of 50 basis points at 2.0%.

Federal Reserve Chairman Powell: We are currently not considering or discussing interest rate cuts.

Wall Street Journal reports that the Federal Reserve will keep interest rates unchanged at a 22-year high, but there is still a possibility of further rate hikes to continue to slow down inflation. In the FOMC statement, officials noted strong recent economic activity and emphasized the potential pressure on economic activity from rising long-term interest rates. The major issue facing the Federal Reserve is focused on officials' expectations for the economy and how they can come to conclusions about whether they are moving in the right or wrong direction. Continued slowing of inflation may allow officials to maintain interest rates, while any acceleration in price pressures could lead to further rate hikes.

The Federal Reserve kept the benchmark interest rate unchanged at 5.25%-5.50%, in line with market expectations.

On November 1st, according to CME's "Fed Watch" data, the probability of the Fed maintaining interest rates in the range of 5.25%-5.50% this week is 98.4%, and the probability of raising interest rates by 25 basis points to the range of 5.50%-5.75% is 0.0%.

On October 31st, according to CME's "Fed Watch": The probability of the Fed maintaining interest rates unchanged in the range of 5.25%-5.50% this week is 98.4%, and the probability of raising interest rates by 25 basis points to the range of 5.50%-5.75% is 0.0%. The probability of maintaining interest rates unchanged until December is 74.5%, the probability of cumulative interest rate hikes of 25 basis points is 24.3%, and the probability of cumulative interest rate hikes of 50 basis points is 0.0%. The Fed will announce the Fed's interest rate decision in the United States from November 1st to November 2nd at 2:00.

October 30th, the Federal Reserve will announce the new interest rate decision at 2:00 AM Beijing time on November 2nd (early Thursday morning). According to CME's "Fed Watch" data, the probability of maintaining interest rates in the range of 5.25%-5.50% is 97.4%.