On December 23, news came that the Federal Reserve's interest rate cut influenced last week's market. Although the rate was cut by 25 basis points on Wednesday as expected, the released dot plot and post-meeting statements were much more hawkish than anticipated, halving the prospects for rate cuts next year. The risk market faced the largest correction since December, plunging into panic. According to 4E monitoring, after the PCE data was released on Friday, U.S. stocks rebounded with all three major indexes closing up more than 1%. The S&P 500 index accumulated a decline of 1.99% for the week, the Dow Jones industrial average fell by 2.25%, and the Nasdaq composite fell by 1.78%. The crypto market encountered its first weekly decline since Trump's election, with the market dropping across the board. Bitcoin rebounded from $92,000 to nearly $100,000 on Saturday before starting a wave of fluctuations and declines, currently reported at $94,010, down 3.19% in the last 24 hours and down 10.35% over the past week; Ethereum fell below $3,300, down over 18% in the past week, and altcoin markets also saw significant declines. Bitcoin spot ETF funds experienced a net outflow for the first time in 15 days. In terms of forex commodities, the U.S. dollar index rose 0.76% for the week due to the hawkish rate cut by the Federal Reserve, marking three consecutive weeks of increase, while non-U.S. currencies fell for the week. Oil prices dropped over 2% for the week, and spot gold fell 0.96% last week. This decline was collectively suffered by risk assets, primarily due to the panic selling brought about by crushed rate cut expectations, as the market re-priced around next year’s rate cut expectations, rather than a narrative of economic fundamentals declining; this still provides long-term solid support for risk assets. This week, as we enter the Christmas holiday in Europe and the U.S., overall liquidity is poor, which will further increase market volatility, leading to strong risk aversion sentiment. eeee.com is a financial trading platform that supports various assets including cryptocurrencies, stock indices, bulk gold, and forex. Recently, it launched a USDT stablecoin wealth management product with an annualized yield of 5.5%, providing investors with potential hedging options. 4E reminds you to pay attention to market volatility risks and to allocate assets reasonably.

#BTC