Good morning. Here are the key updates:
**Cryptocurrencies Crash, Triggering Mass Liquidations** On December 1, cryptocurrencies faced a sharp sell-off, with Bitcoin dropping nearly 8%, Ethereum falling close to 10%, and Dogecoin plunging over 10%. By press time, losses had slightly narrowed.
According to CoinGlass, the past 24 hours saw 272,437 traders liquidated, totaling $993 million in losses.
The sell-off followed S&P Global Ratings downgrading its assessment of Tether (USDT), the largest stablecoin, to the lowest tier, warning that a Bitcoin price decline could leave the token undercollateralized. Analysts cited this downgrade and warnings from the People’s Bank of China as factors reigniting investor concerns.
Meanwhile, Bank of Japan Governor Kazuo Ueda hinted at a potential rate hike in December if economic and inflation forecasts hold, pushing 2-year Japanese bond yields to 2008 highs. Jeff Ko, Chief Analyst at CoinEx, noted rising JGB yields amplify downside risks for risk assets, including cryptocurrencies, as investors weigh unwinding yen carry trades.
**Silver Prices Surge to All-Time High** Spot silver soared over 4% to $58.67/oz, while COMEX silver futures breached $59/oz, up 3% intraday.
Cong Shanshan, an analyst at Huishang Futures, highlighted silver’s dual appeal as both a financial and industrial asset. Loose liquidity supports its financial role, while shrinking global inventories signal tightening physical supply, potentially driving prices higher.
"With the Fed’s rate-cut cycle restarting, inflation expectations rising, and inventory declines persisting, silver may extend gains after hitting records. Supply constraints and trade policies could make it outperform gold," Cong added.
**Analysts: A Shares Poised for Year-End Rally** As debates over AI stock valuations—exemplified by Nvidia—intensify in U.S. markets, A-shares have rebounded modestly amid low volumes, with focus shifting to upcoming policy meetings.
Nvidia’s recent earnings scrutiny revealed concerns like extended receivables days and a 75% cash conversion rate, sparking broader worries about tech valuations and capital expenditure sustainability. Sun Feng, Galaxy Futures analyst, noted Nvidia’s $110B "supplier financing" ecosystem—including $15B in GPU-collateralized debt—could face risks if AI cash flows disappoint.
Domestically, Chen Chang of Yide Futures argued China’s AI investments are in earlier stages versus the U.S., with valuations supported by earnings and a divergent macro backdrop. Alibaba’s recent comment that "AI bubbles are unlikely for three years" underscores robust demand, keeping domestic chip supply tight.
Despite muted October M1 growth, markets remain resilient. Sun Feng attributed this to digested financial data, RMB appreciation expectations, and Fed rate-cut prospects, which may narrow Sino-U.S. yield gaps and attract foreign inflows. Key December catalysts include China’s Central Economic Work Conference, AI breakthroughs, and tech IPOs like Moore Threads.
Chen expects mid-December policy meetings to clarify 2026 growth targets (~5%) and stimulus focus on advanced manufacturing. With clearer domestic policies, improving global liquidity, and tech listings, A-shares could launch a year-end rally.
