On the macroeconomic front, attention is focused on the release of the US November core PCE price index, a key measure of inflation, at 9:30 tonight. A report from Barclays mentioned that over the past 40 years, the Federal Reserve's pause in raising interest rates has usually been a buy signal for the stock market, and the S&P 500 index has often reached new highs between rate hikes and recessions. The S&P 500 is currently moving in line with this pattern, and the pattern applies to Bitcoin as well. But what needs to be vigilant is a certain point in time after the interest rate cut.
At the end of the year, many institutions make predictions for the encryption market next year. Cryptoquant predicts that due to the influence of ETFs and the background of Bitcoin halving and interest rate cuts, Bitcoin will usher in a bull market in 2024, with the price possibly reaching $160,000. Matrixport reports that Bitcoin holders will be wealthier by $500 billion in 2023 and prices will continue to climb in 2024. Pantera Capital partners predict six major trends in the encryption field in 2024, including Bitcoin resurgence, token socialization, stablecoins and TradFi-DeFi bridges, modularity and ZK narrative integration, more computing-intensive applications on the chain, and public Chain integration and application chain hub-and-spoke model.
BlackRock is treating the approval of a Bitcoin spot ETF as mission-critical, with CEO Larry Fink calling Bitcoin an international asset and store of value, comparable to gold. Bitcoin's status has changed from a niche investment product to an international asset.
Ethereum developers are busy working on next year's Dencun upgrade, using a new process called "proto-danksharding" to increase data storage capacity. Dencun is expected to run on the Goerli test network on January 17, with the goal of lowering second-layer rollup fees and scaling the blockchain. Testing of the Cancun upgrade is scheduled to take place on the Sepolia test network on January 31st.
BitMEX founder Arthur Hayes said he had sold SOL and bought ETH, predicting that the value of ETH may reach $5,000. His views are increasingly cryptic, but his bullishness on ETH is gaining traction.
The market focus is on the SOL ecosystem. SOL tokens have skyrocketed. The single-day trading volume of the Solana ecosystem DEX has reached the second highest in history, surpassing Ethereum. SOL surpassed BNB to become the fourth largest cryptocurrency by market capitalization.
Market expectations are at record highs, with low supply and strong demand. Short-term trends are uncertain, especially on Christmas Eve.ETH followed the market trend and the exchange rate held at 0.05.
In terms of altcoins, Sats is adjusting and the Inscription market is still in the de-bubble stage. ACE maintains the upward trend of new highs, JTO's trend is slightly weaker, and SOL tokens are not recommended to chase higher.
