The earnings season for US stocks is approaching, and the crypto market shows significant improvement in October.

In October, the U.S. economy demonstrated a stable operating trend, alleviating market concerns about the macro economy. The U.S. elections became a major factor influencing the market, and the earnings season for U.S. stocks arrived as expected, with technology stocks facing a significant decline at the end of the month. Meanwhile, the crypto market became a popular choice for hedging, with Bitcoin prices approaching historical highs, seemingly signaling the arrival of a new cycle of rising crypto assets.

The U.S. economic data for September was robust, with non-farm employment increasing by 254,000, surpassing expectations; the unemployment rate dropped to 4.1%, below the expected 4.2%. Both manufacturing and services PMI reached a two-month high, indicating an improvement in economic activity. However, inflationary pressures persist, with the September CPI rising 2.4% year-on-year and core CPI rising 3.3% year-on-year, both slightly above expectations.

The latest Beige Book released by the Federal Reserve depicts a moderate picture of a stable economy and easing inflation, essentially confirming that the U.S. economy is moving toward a soft landing. However, the report also repeatedly mentions the uncertainty brought by the upcoming U.S. elections, suggesting that this may lead consumers and businesses to delay investments and decisions.

As the impact of economic fundamentals gradually weakens, political factors have become key in dominating the short-term trends of the market. However, on the last trading day of October, the U.S. stock market unexpectedly suffered a heavy blow. The three major indexes collectively declined, with technology stocks experiencing widespread downturns. The Dow dropped by 0.90%, the Nasdaq fell by 2.76%, and the S&P 500 index decreased by 1.86%. Several tech giants saw their stock prices plummet, erasing the gains made in October.

Nevertheless, the financial reports of some technology companies remain impressive. A well-known electric vehicle manufacturer saw its stock price soar by 21.92% on October 24. The company’s revenue in the third quarter grew nearly 8% year-on-year, although it was below expectations, profit exceeded expectations, and the gross margin increased by 195 basis points year-on-year to 19.8%. The company's investment in the field of artificial intelligence has also significantly increased, becoming an important factor driving the rise in stock prices.

It is worth noting that the U.S. election has become the core focus of the market. The stock price of a media technology company related to a certain candidate surged nearly 250% this month, reflecting the market's expectations for the election results. Currently, traders generally have a more favorable outlook on U.S. domestic companies, which has also become one of the logics supporting the stock prices of technology giants.

Globally, stock markets in countries like Japan, France, and Germany have shown a lackluster performance, seemingly awaiting the market changes brought by the U.S. elections.

The crypto market has seen significant recovery in October. After seven months of sideways consolidation, Bitcoin has finally entered a new round of upward movement, with prices approaching historical highs. During this "Uptober", the U.S. Bitcoin ETF has experienced a surge in capital inflow.

Both Republican and Democratic candidates have shown a relatively friendly attitude towards cryptocurrency. This makes cryptocurrency a popular choice for capital hedging ahead of the election. Historical experience indicates that market volatility often intensifies before elections, and investors' demand for hedging may drive frequent fluctuations in the crypto market prices.

However, compared to Bitcoin, Ethereum's performance has been relatively weak. For the past two months, Ethereum has been in a sideways trend. Its ETF capital inflows and outflows have not shown significant fluctuations. This may be partly due to the attraction of funds by other public chains and the prevailing "speculation" atmosphere within the community. However, these short-term factors may not affect Ethereum's long-term trend.

As economic concerns fade, the market is refocusing on main themes such as artificial intelligence. Despite the uncertainty brought about by the U.S. elections, the crypto market has unexpectedly become a popular choice for current investments. This may confirm that Bitcoin's advantages as a safe-haven asset are gradually being recognized by more investors. With the conclusion of the U.S. elections and the clarification of the global macro situation, the market may return to themes like artificial intelligence, and the crypto market is expected to remain active, potentially even recreating the prosperous scene of 'stocks and coins soaring together.'