After a volatile trading day, U.S. financial markets are showing signs of stabilizing. The sharp sell-off on December 18 resulted in major indices like Dow Jones, S&P 500, and Nasdaq recording deep declines, due to concerns surrounding the Federal Reserve's interest rate policy. Fed Chairman Jerome Powell emphasized that inflation remains a threat, while strong GDP growth and the labor market continue to pose challenges for the interest rate cut plan in 2025.
Yesterday, the Dow Jones dropped more than 1,123 points (2.6%), closing at 42,326.87. This is the longest losing streak since 1974. The S&P 500 lost 3%, while the Nasdaq Composite suffered the heaviest losses with a decrease of 3.6%.
However, in today's trading session, futures contracts show signs of recovery. Technology stocks, particularly Nvidia and Tesla, are leading the rally with a pre-market increase of over 2%. This indicates that investors may view the recent sell-off as a buying opportunity, although risks remain present.
Bitcoin faces selling pressure
While traditional financial markets begin to stabilize, Bitcoin continues to experience strong fluctuations. After reaching a record high of 108,000 USD earlier in the week, the price fell below 100,000 USD last night. Currently, Bitcoin is trading at around 100,200 USD, showing a slight but unstable recovery.
Selling pressure mainly comes from long-term investors. According to data from Binary Coin Days Destroyed (CDD), these investors have taken advantage of high prices to liquidate their assets. At the same time, trading volumes have decreased in both the spot and derivative markets, raising concerns among analysts about the lack of momentum in the short term.
Technically, the important support level for Bitcoin currently lies at 97,600 USD. If demand continues to decline, the likelihood of Bitcoin testing this level is very high, especially in the context of the overall financial market sentiment being highly unstable.
Short-term forecast
• Wall Street: Today's recovery may be temporary, and the market will continue to closely monitor signals from the Fed along with new economic data.
• Bitcoin: High volatility may persist, but important support levels such as 97,600 USD will play a decisive role in the next direction.
Both markets are in a sensitive phase, with risks from inflation, monetary policy, and investor sentiment continuing to dominate.
#BTC☀ #Bitcoin❗ $BTC #MarketCorrectionBuyOrHODL
