According to the latest released U.S. Consumer Price Index (CPI) data for November, the U.S. CPI increased by 2.7% year-on-year, which is in line with market expectations. The previous value was 2.6%, with a month-on-month increase of 0.3%, higher than the previous value of 0.2%, also consistent with market predictions.
From the data, we can see that although the CPI has slightly increased, the overall growth rate remains stable without significant fluctuations. This indicates that inflation in the U.S. is still within a controllable range, and the market's expectations for Fed rate hikes have not changed significantly. Although the CPI data is positive, the long-term trend shows that inflation has gradually declined and maintained at a low level, giving the Fed room to continue its existing monetary policy.
From a macroeconomic perspective, the increase in CPI has not significantly exceeded expectations, indicating that the Federal Reserve may not take large-scale rate hikes in the future, but rather continue to maintain the existing policy framework. For risk assets such as the cryptocurrency market, this means more capital inflow, especially under the relatively loose monetary policy maintained by the Federal Reserve.
The U.S. SEC seeks public opinion, Bitwise ETF application enters a new phase
Compared to the stable growth of traditional financial markets, the dynamics of the cryptocurrency market are more intense. Recently, the U.S. Securities and Exchange Commission (SEC) began seeking public opinion to advance the listing application of Bitwise Bitcoin and Ethereum ETFs. According to public documents, the ETF proposed by Bitwise will consist of BTC and ETH, aiming to provide investors with a convenient way to invest in the two largest cryptocurrencies by market capitalization globally.
ETFs, as a widely used investment tool in traditional financial markets, will greatly enhance the market participation of crypto assets once introduced into the cryptocurrency sector. Investors can participate in cryptocurrency investments through traditional securities trading platforms, which not only lowers the investment threshold but also makes crypto assets more transparent and regulated.
It is worth noting that while the SEC's public opinion solicitation is a step forward for crypto ETFs, it does not mean that they will be approved immediately. The SEC still needs to assess market risks, the volatility of cryptocurrencies, and related regulatory compliance issues in detail. However, from market trends, as the crypto asset market gradually matures and the regulatory environment improves, this ETF listing application is likely to be approved in the end, bringing more options and opportunities for investors in the future.
The trend of tokenized financial markets and BlackRock's investment in crypto
The CEO of BNY Mellon stated that tokenization is a major trend in the future of financial markets, a viewpoint increasingly recognized by capital market participants. Tokenization transforms traditional financial assets into digital tokens through blockchain technology, enhancing asset liquidity and providing investors with more ways to invest. With the development of tokenization, profound changes in global financial markets are expected in the coming years.
BlackRock and Fidelity have purchased over $500 million worth of ETH combined in the past 48 hours, further accelerating institutional recognition and investment in crypto assets. This data indicates that more and more traditional financial institutions are accelerating their layout in crypto assets, especially in cryptocurrencies with strong ecosystems like Ethereum. The entry of these institutions is expected to greatly enhance the market depth and stability of crypto assets, which is a long-term positive factor for the entire crypto market.
Musk's wealth surge and its potential impact on the crypto market
Recently, Musk became the first person in the world to have a net worth exceeding $400 billion, and this news has also had a certain impact on the cryptocurrency market. Musk's net worth increased by about $50 billion, mainly due to the latest valuation of SpaceX and the increase in his shares in companies like Tesla. This asset growth is not only a result of his personal business achievements but also closely related to his support for cryptocurrencies.
Musk has publicly supported Bitcoin and other cryptocurrencies multiple times, especially regarding his attitude towards Bitcoin and Ethereum. Although Musk has not directly disclosed the specific allocation of his personal assets in the crypto space, it can be inferred that as his wealth surges, more investments will flow into the crypto asset sector. Particularly after the successful financing and equity transactions of SpaceX, Musk and his investors are likely to continue promoting the widespread application and development of cryptocurrencies.
Musk's wealth surge, especially after Trump's victory in the presidential election, reflects strong confidence in specific companies and assets. This increase in confidence may also spill over into the cryptocurrency market, leading to more funds being directed towards the crypto sector. For investors, paying attention to Musk's actions and statements will help better grasp the trends in the crypto market.
The U.S. spot Ethereum ETF had a net inflow of 28,100 coins yesterday, valued at $102 million.
The U.S. spot Bitcoin ETF had a net inflow of 2,309 coins yesterday, valued at $223 million.
BTC: Yesterday, Bitcoin closed with a 'medium bullish candle', indicating a certain rebound in the market driven by bulls. However, it is important to note that yesterday's rebound was accompanied by low trading volume, showing that the current market's capital inflow is not strong, reflecting that market confidence has not fully recovered.
Overall, considering the insufficient trading volume, the market's confidence seems not to have fully recovered. Once the current high point is broken, there may be a risk of a false breakout. Therefore, for players, it is advisable to gradually take profits. From the current situation, although Bitcoin prices may continue to rise, the overall market trend may not bring huge gains.
ETH: Yesterday, Ethereum closed with a 'medium bullish candle', currently above the 5-day and 10-day moving averages. The short-term trend remains unpredictable, showing an overall upward trend. During the rise, there is a high probability of sharp fluctuations, continually clearing leverage and contracts, with a strong likelihood of choosing to continue the upward momentum.
Altcoins: After experiencing a major cleanup, the altcoin market has shown a sharp rebound, creating a positive atmosphere for players. However, caution is needed regarding this rebound, as the altcoin market may very likely undergo another double bottom test, with the adjustment period potentially lasting until the end of the month. A second explosion in the altcoin season may not have truly begun yet, so patience is required.
Today's Fear and Greed Index: 83 (Extreme Greed)
