PANews, December 21 - This week, the Federal Reserve finally confirmed the long-awaited 'turning point' by the market, and the central bank's statement and updates to economic forecasts this week have 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, which led to a rise in US Treasury yields. Earlier this week, Bitcoin fell from its historical high, continuing its downward trend in the European session on Friday, approaching $95,000 at one point. Earlier, Bitcoin had just set a new all-time high of over $108,000, and this round of decline in the cryptocurrency market has had a greater impact on altcoins such as Ethereum and Dogecoin. Additionally, US exchange-traded funds (ETFs) directly investing in Bitcoin ended a 15-day streak of inflows this week, recording an outflow of $680 million, highlighting the shift in market sentiment.
With Christmas approaching, the market will be relatively calm next week, although there are still some relatively influential data points. However, due to thin liquidity, market volatility may become significant. Here are the key points the market will focus on in the new week:
Monday 23:00, US Conference Board Consumer Confidence Index for December;
Thursday 21:30, US Initial Jobless Claims for the week ending December 21.
For the US dollar, with the overall hawkish stance within the Federal Reserve, it is expected that the dollar will not easily lose its throne earned this year, although low trading volumes during the holiday period may trigger some unnecessary volatility. Overall, if there is any market turbulence during the holiday period, it is more likely to impact US stocks and US bonds. The Federal Reserve's hawkish position has not been welcomed by Wall Street, and as US Treasury yields continue to rise, the sell-off may intensify.
