The PCE index released last Friday showed a moderate rise in inflation, and U.S. stocks finally rebounded from Powell's hawkish interest rate cut. However, cryptocurrencies faced their first weekly decline after Trump's election, with Arthur Hayes accurately predicting last week that the cryptocurrency market would experience a painful decline around Trump's inauguration on January 20, 2025. This week will enter the Christmas holiday in the European and American markets, with expected light trading.
The PCE index indicates a moderate rise in inflation
The Federal Reserve's preferred inflation indicator, the Personal Consumption Expenditures Price Index (PCE), rose 0.1% in November after an unadjusted increase of 0.2% in October. The year-on-year increase was 2.4%, slightly lower than economists' estimate of 2.5%, with a previous value of 2.3%.
The progress of inflation slightly boosted investor confidence, and U.S. stocks finally rebounded from Powell's hawkish interest rate cut, with all three major indices closing higher.
This week will enter the Christmas holiday in the European and American markets, with expected light trading.
The U.S. temporarily avoids the government shutdown crisis
The U.S. Senate passed the funding support bill at the last minute to maintain the operation of the U.S. government until mid-March and sent the bill to President Biden for signing.
Early Saturday morning, the bill passed in the House of Representatives with a vote of 85 to 11, bringing an end to the turmoil of the past two days.
The White House stated in a statement that Biden will sign the bill, extending the government funding deadline to March 14, which includes over $100 billion in aid for victims of natural disasters and farmers. The Senate vote on this legislation was one of the last votes of the 118th Congress.
This bill also avoided the crisis of some U.S. government agencies shutting down during the Christmas holiday, but it only temporarily postponed the issue until March next year.
(The U.S. faces a debt ceiling crisis, a government shutdown is imminent, and Trump demands the immediate repeal of the debt ceiling)
Cryptocurrencies faced their first weekly decline after Trump's election
Since Donald Trump won the U.S. election last month, Bitcoin has experienced its first weekly decline, as the cautious policy outlook of the Federal Reserve weakened the optimistic sentiment triggered by the president-elect's embrace of the cryptocurrency industry.
According to data from CoinGecko, Bitcoin had a weekly decline of 7.9%, Ethereum fell by as much as 15.7%, and the meme coin Dogecoin dropped by 22.3%.
Arthur Hayes, the founder of BitMEX, accurately predicted last week that the cryptocurrency market would experience a painful decline around Trump's inauguration on January 20, 2025. His family office Maelstrom plans to reduce some positions in advance, hoping to repurchase some core positions at a lower price sometime in the first half of next year.
(Arthur Hayes: What is the truth about Trump? What assets should be positioned in advance?)
This article discusses the cryptocurrency's first weekly decline following Trump's election, and Arthur Hayes' accurate prediction! Originally appeared in Chain News ABMedia.
