U.S. stocks ended volatile with slight losses, struggling to rebound from a sell-off after the Federal Reserve lowered its forecast for an interest rate cut next year. The decline of cryptocurrencies was even more alarming. Bitcoin reached a low of $95,700 this morning, and Ethereum dropped to a low of $3,326. Within 24 hours, the entire network's liquidation volume reached $1.03 billion.
U.S. economy strong, stocks fail to recover from Fed-induced selloff
U.S. stocks ended volatile with slight losses, struggling to rebound from a sell-off after the Federal Reserve lowered its forecast for an interest rate cut next year.
Data released by the U.S. Department of Labor on Thursday (12/19) showed that the number of initial unemployment benefits claims fell to 220,000 last week, lower than market expectations of 229,000, continuing some seasonal fluctuations that often occur during the holidays. Gross domestic product (GDP) in the third quarter was revised upward to 3.1% from 2.8%.
The data showed the U.S. economy was solid and confirmed the Federal Reserve's cautious new policy of slow easing. After the Federal Reserve cut interest rates by one point as expected by the market, suggesting that future interest rate cuts will become smaller, the major U.S. stock indexes plunged sharply on 12/18. The panic index VIX jumped to 27.62 a few days ago, but fell back on Thursday.
USD/JPY rose 1.51% to 157.13, its highest level since July, after the Bank of Japan decided to dovishly keep interest rates on hold. President Kazuo Ueda said more time is needed to evaluate the upcoming economic data and the impact of U.S. President-elect Trump's policies.
Markets will be keeping a close eye on Friday's release of the final note of data for the year - personal consumption expenditures (PCE) for November.
Bitcoin exceeded 100,000 Mg, and the entire network’s liquidation volume reached 1.03 billion Mg
Bitcoin continued to fall yesterday, with a low of $95,700 this morning, and Ethereum was even weaker, with a low of $3,326. Dogecoin fell more than 11%. The ten largest cryptocurrencies by market capitalization all fell more than 3%.
Source: CoinGecko
According to Coinglass data, within 24 hours, Bitcoin was forced to liquidate US$248 million, Ethereum was US$208 million, and the entire network liquidated US$1.03 billion.
This article The Federal Reserve’s power is astonishing, Bitcoin fell to 97K, and U.S. stocks are struggling to recover. First appeared on Chain News ABMedia.
