Good evening, brothers and sisters!
Let's first take a look at last night's US CPI data.
In November, the US CPI rose by 2.7% year-on-year, in line with market expectations, and increased by 0.3% month-on-month, which is an increase from last month's 0.2%, marking the highest increase since April of this year. Although the data shows a bit of acceleration, the overall situation still meets expectations. This also brings a certain degree of reassurance to the market.
Next, let's look at the performance of US stocks.
The three major US stock indices performed differently. The Dow Jones index rose slightly by 0.01%, while the S&P 500 index increased by 0.73%. Tech stocks and chip stocks performed strongly, driving the Nasdaq up by 1.37%, reaching an all-time high and surpassing the 20,000-point mark for the first time. Notably, Tesla's stock price rose nearly 6%, boosting major tech stocks like Google, Meta, and Amazon, while Musk's personal wealth also surpassed $400 billion, making him the world's richest person.
According to predictions by Goldman Sachs analyst Whitney Watson from some time ago, the November CPI data paves the way for interest rate cuts next week. Although the Federal Reserve has entered a 'quiet period', they still have confidence in anti-inflation measures and plan to gradually ease monetary policy by 2025. Inflation is expected to continue to slow, with CPI increases in the coming months expected to be between 0.2% and 0.25%, with January possibly being slightly higher.
Recently, the US spot Ethereum ETF has seen continuous fund inflows for 13 trading days, totaling over $1.95 billion. Bitcoin's price has dropped from a historical high of $104,000 to $94,000, a correction of nearly 10%, while Ethereum fell from $4,087 to $3,500, a correction of over 10%. However, after the correction, these cryptocurrencies have started to rebound, especially Ethereum, showing strong market demand. Bullish sentiment in the market continues to grow, and a surge in December is expected.
Regarding altcoins,
The altcoin market is highly volatile, with price fluctuations often exceeding expectations. When prices rise, the returns from altcoins can be very substantial, but a drop can also bring significant pressure. Therefore, investors holding altcoins may feel anxious during market corrections, but during market upswings, they may see others envious of them.
Currently, I believe the bull market has just begun. While I cannot accurately predict whether Bitcoin will rise to $200,000 or $300,000, the overall trend of the market is still bullish. In the past, the dominant force in the market has been old investors, but now, the participation of institutional investors is increasing, such as MicroStrategy and other institutions joining, which will have a profound impact on the market direction.
The future direction of the market
This month's market news is quite complex, with both negative and positive factors. We need to pay attention to the upcoming Federal Reserve meeting and the impact of holidays like Christmas on the market. At the same time, future monetary policy may become more accommodative, which is good news for the market. However, we also need to be wary of the risks of interest rate cuts and economic recession, and we must remain cautious.
Select strong coins:
Currently, the overall market is rising, but the strongest coins often perform well in the first wave of increases. After the second wave of corrections, we can start to gradually buy high-quality altcoins that are resilient to downturns. Remember, the third wave of a bull market is the most anticipated.
In terms of operations, do not pursue the initial leading coins, but rather focus on the opportunities for upward movement after the trend starts and after corrections. When selecting coins, pay attention to those with smaller declines, or those that can quickly rebound even after corrections, such as AI sector, MEME sector, SOL series, and the recently popular DEFI sector.
