This week, US stocks are influenced by Thanksgiving and Black Friday, with adjusted trading hours. The market will open on Monday and Wednesday, and Thursday will have a half-day session with an early close. Data and the Federal Reserve's minutes will be released on Wednesday.
During the Black Friday shopping frenzy, a large influx of public funds into the consumption sector is expected, which may negatively impact liquidity in the cryptocurrency space. Funds are being diverted, and activity may be affected. On December 10, the results of Microsoft shareholders' vote on Bitcoin investment will be announced!
If approved, a $5 billion buy order will enter the market, potentially driving Bitcoin up by 5 - 10%, leading to a surge in the cryptocurrency space; conversely, if not approved, it will be a short-term negative for the market, and sentiment may turn low. On December 19, the Federal Reserve's interest rate decision is anticipated, with the market expecting a 25 basis point rate cut. Although Trump's election has caused inflation to rebound, it is unlikely to stop the trend of rate cuts in the short term.
This decision will disrupt global capital flows, and the cryptocurrency space will also be affected, as some funds may be reallocated due to the rate cut. On December 20, Christmas and tax matters are approaching, both of which are unfavorable for liquidity, especially tax matters, with US stocks being the most directly impacted, and the cryptocurrency space also unlikely to escape. Under tight capital conditions, trading may cool down, and with the domestic New Year approaching, the market's capital environment is becoming more complex. On January 20, 2025, Trump will be inaugurated as president, and the SEC chairman will resign on the same day. Trump is seen as a 'friendly faction' towards cryptocurrency!
His administration will be a significant boon for the cryptocurrency space, and the market may rally around this development, presenting new opportunities for cryptocurrencies. The interest rate decision on January 29 will be closely watched, focusing on whether Trump can push the Federal Reserve to accelerate interest rate cuts.
