This week, the Federal Reserve finally confirmed the long-anticipated 'pivot' by the market. The central bank's statement and updates to its economic forecasts this week had a significant impact on the market. Market participants currently expect the Federal Reserve to cut interest rates by about 40 basis points by December 2025, leading to a rise in U.S. Treasury yields. Earlier this week, Bitcoin fell from its historical high, and on Friday during the European session, Bitcoin continued its downward trend, nearing $95,000. Earlier, Bitcoin had just set a new historical high of over $108,000, with this round of declines in the cryptocurrency market hitting altcoins like Ethereum and Dogecoin even harder. Additionally, U.S. exchange-traded funds (ETFs) directly investing in Bitcoin ended a consecutive 15-day inflow this week, recording an outflow of $680 million, highlighting the shift in market sentiment. With Christmas approaching, next week's market is expected to be relatively calm, although some influential data will still be released. Due to thin liquidity, market volatility may increase significantly. Here are the key points the market will focus on in the new week: Monday at 23:00, U.S. Conference Board Consumer Confidence Index for December; Thursday at 21:30, initial jobless claims for the week ending December 21. For the U.S. dollar, with the overall hawkish stance within the Federal Reserve, it is expected that the dollar will not easily lose its position gained this year, although low trading volumes during the holiday season may lead to some unnecessary volatility. Overall, any market turbulence during the holiday period is more likely to impact U.S. stocks and bonds negatively. The Federal Reserve's hawkish stance has not been well-received on Wall Street, and as U.S. Treasury yields continue to rise, selling pressure may intensify. (Jin Shi)

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