On Wednesday, US announced data showing: November CPI year-on-year at 2.7%, meeting the expected value of 2.7%, up from the previous value of 2.60%; November core CPI year-on-year at 3.3%, meeting the expected value of 3.3%, unchanged from the previous value of 3.30%. The CPI data met expectations, and the market overall rebounded, with the Nasdaq index first breaking through 20,000 points, refreshing its historical high, with a cumulative increase of over 33% this year. The S&P 500 index rose by 0.85% during the session. Tesla's stock price surpassed the peak of $414.49 in November 2021, creating a new historical high, with a daily increase of about 4.5%. The probability of the Fed cutting rates by 25 basis points in December rose to 97.7%, with a cumulative probability of a 50 basis point cut by next January at 27.1%. On Thursday, the European Central Bank will announce its interest rate decision, with the market expecting a 25 basis point cut this time, and the market anticipates a 158 basis point cut by the ECB in 2025.

Back to the point:

Microsoft's major shareholders opposed the company's BTC investment proposal on Tuesday. The Microsoft board disclosed its reasons for rejecting the BTC investment in regulatory filings, stating that the proposal was unnecessary as the company is already considering multiple investment options. Microsoft also added that previous assessments had listed BTC and other cryptocurrencies as one of the considered options, and it would continue to monitor trends and developments related to cryptocurrencies to guide future decisions. South Korea plans to impose a 20% tax on cryptocurrency gains (22% as local tax), originally set to take effect on January 1, 2022. Due to opposition from investors and the industry, the plan has been postponed twice to January 1, 2025. The latest congressional proposal seeks to further postpone the cryptocurrency tax collection until 2027. On December 11, Nasdaq-listed mining company Riot Platforms acquired 705 BTC for approximately $68.45 million. Previously, Riot Platforms planned to issue $500 million in notes for BTC acquisitions and other purposes. HODL15 Capital stated that the market currently mines 450 BTC weekly, with last week's US BTC spot ETF purchasing 28,600 BTC, MicroStrategy (MSTR) buying 21,550 BTC, and MARA Holdings (MARA) acquiring 11,774 BTC. MicroStrategy (MSTR) still has $28 billion in authorized BTC purchase capacity remaining. BTC demand exceeds supply, supporting the long-term trend. Crypto Briefing reported that MicroStrategy is expected to be included in the Nasdaq 100 index on December 23, which means MSTR will join giants like Nvidia and Apple in attracting passive capital inflows into the world's largest ETF (QQQ).

Bloomberg ETF analyst James Seyffart expects that the ETF tracking the Nasdaq 100 index will purchase about $2.1 billion of MicroStrategy stock. Bernstein analysts stated that although Google announced the launch of the Willow chip, the quantum threat to BTC still seems to require decades to materialize. The leveraged liquidation that occurred on Monday after breaking through $100,000 last week coincided with Google's announcement of its first quantum chip, Willow, reigniting concerns that private keys could be decrypted to access user funds. Google's Willow chip represents a significant advancement in quantum computing; however, despite having 105 qubits, it is far from the millions of qubits needed to effectively attack BTC's elliptic curve digital signature algorithm (ECDSA) and secure hash algorithm (SHA-256). 'BTC contributors are also discussing transitioning to quantum-resistant encryption.' Slow Fog founder Yu Xian cited cryptocurrency researcher Jeffrey Scholz's opinion, stating: 'The several dozen quantum gates currently available are still millions of gates away from being able to crack BTC private keys; increasing this number of quantum gates is not easy, and noise and error rates will also increase, ultimately resulting in a quickly produced waste in the real world... Let's worry about Satoshi's private keys in a few decades.' On Wednesday, US announced data showing: November CPI year-on-year at 2.7%, meeting the expected value of 2.7%, up from the previous value of 2.60%; November core CPI year-on-year at 3.3%, meeting the expected value of 3.3%, unchanged from the previous value of 3.30%.

Analyst Wasif Latif stated: Everything is in line with expectations, and the market seems to breathe a sigh of relief as this is yet another steady report with no surprises. Goldman Sachs analyst Whitney Watson stated: Today's CPI data clears the way for next week's rate cut; after today, the Fed will enter a 'quiet period' and still has confidence in the anti-inflation process. In the new year, the Fed will continue to gradually ease monetary policy. Economist Brian Jacobsen stated that with the jobs report (unemployment rate rising from 4.1% to 4.2%) and the inflation report, there is nothing to stop the Fed from cutting rates by 25 basis points next week; there may be four rate cuts in 2025, and inflation will ultimately fall to the target level. After the CPI report was released, traders expect a cumulative cut of 87 basis points by the end of 2025, indicating a 25 basis point cut by the Fed next week; about two more cuts in 2025, which is fewer than the four times proposed by Fed members in the latest quarterly dot plot in September. After the US CPI release, the probability of the Fed cutting rates by 25 basis points in December rose to 97.7%, with a cumulative probability of a 50 basis point cut by next January at 27.1%. On Wednesday, the Bank of Canada lowered its policy rate from 3.75% to 3.25%, marking the second consecutive month of a 50 basis point cut, in line with market expectations, with a total of 175 basis points cut this year. The rate market expects about a 70% probability of further rate cuts by the Bank of Canada in January next year. Bank of Canada Governor Macklem stated that monetary policy no longer needs to remain tight, and looking ahead, further rate cuts will be considered. The CPI data met expectations, and US stock indices and the cryptocurrency market overall rebounded.

The Nasdaq index has first broken through 20,000 points, setting a new historical high, with a cumulative increase of over 33% this year, approaching double from the cyclical low point of 10,088 points (2022) in this round of interest rate hikes. The S&P 500 index rose by 0.85% during the session; gold increased by 0.9% to $2,720 per ounce. Tesla's stock price surpassed the peak of $414.49 in November 2021, creating a new historical high, rising about 4.5% during the session; BTC returned to $100,000, up 5%. Ray Dalio, founder of Bridgewater Associates, stated at a financial conference in Abu Dhabi that he will invest in 'hard currencies' such as gold and BTC, while avoiding debt assets, as most major economies (US/EU) face increasing debt issues. The CEO of Goldman Sachs stated that they would assess participation in the BTC or ETH market if regulators allow it. CPI met expectations, and the Fed's rate cut expectation on December 18 rose to 97.7%, positively stimulating the increase; the fluctuations in the bull market are quick, with an upward trend and less anxiety. The Fed's dot plot in September indicated four rate cuts of about 100 basis points by 2025 (market expectations are 2-4 times). This Wednesday, the Bank of Canada cut rates by 50 basis points, totaling a 175 basis point cut this year; the European Central Bank is expected to cut rates by 25 basis points this Thursday, with the market anticipating a 158 basis point cut by the ECB in 2025. Ray Dalio of Bridgewater Associates said he is considering hard currencies (like gold and BTC). BTC stands at $100,000, altcoins are warming up, with a few reaching new highs; the trend of the bull market is clear and straightforward, and it is sufficient to follow the trend and the growth of bubbles while increasing knowledge reserves about the sector and reducing anxiety. There isn't much to write about today; the bubble growth will continue in 2025.