The PCE indicator released last Friday showed moderate inflation, and US stocks finally rebounded from the hawkish rate cut by Powell. However, cryptocurrencies encountered a drop in the first week after Trump's election, and Arthur Hayes accurately predicted last week that the cryptocurrency market would experience a painful drop around Trump's inauguration on January 20, 2025. This week, the Christmas holiday in the European and American markets is expected to result in a quiet trading environment.
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TogglePCE indicator showed moderate inflation
The personal consumption expenditures price index (PCE), the Federal Reserve's preferred inflation indicator, rose 0.1% in November after an unrevised 0.2% increase in October. The year-over-year rate was 2.4%, slightly lower than the 2.5% expected by economists, compared to the prior 2.3%.
The progress of inflation has somewhat boosted investor confidence, and the three major US stock indices all closed higher, rebounding from the hawkish rate cut by Powell.
This week, the European and American markets will enter the Christmas holiday, and the market is expected to be quiet.
The US temporarily avoided the government shutdown crisis
The US Senate passed a funding support Bill at the last minute to keep the US government running until mid-March, and sent the Bill to President Biden for signing.
In the early hours of Saturday, the Bill was passed in the House of Representatives by a vote of 85 to 11, more than six hours after it was passed, putting an end to the turmoil of the past two days.
The White House said in a statement that Biden will sign the Bill, extending government funding until March 14, including over $100 Bln in aid for natural disaster victims and farmers. The Senate's vote on this legislation was one of the last votes of the 118th Congress.
This Bill also avoids the crisis of some US government agencies shutting down during the Christmas holiday, but it only postpones the problem to next March.
Cryptocurrencies encountered a drop in the first week after Trump's election
Since Trump (Donald Trump) won the US presidential election last month, Bit has experienced its first weekly drop, as the cautious policy outlook of the Federal Reserve has dampened the optimism triggered by the president-elect's embrace of the Bit industry.
According to data from CoinGecko, Bit had a weekly drop of 7.9%, Eth dropped 15.7%, and the original meme coin Dogecoin even dropped 22.3%.
Arthur Hayes, the founder of BitMEX, accurately predicted last week that the Bit market would experience a painful drop around Trump's inauguration on January 20, 2025. His family office Maelstrom will pre-reduce some positions, hoping to buy back some core positions at a lower price at some point in the first half of next year.
(Arthur Hayes: What is the truth about Trump? Where to pre-position assets)
Risk Warning
Investing in Bit carries a high degree of risk, and its price may fluctuate wildly. You may lose your entire principal. Please carefully assess the risks.
