According to PANews, the Federal Reserve confirmed a long-anticipated policy shift this week, significantly impacting the markets. Market participants now expect a rate cut of approximately 40 basis points by December 2025, leading to a rise in U.S. Treasury yields. Earlier this week, Bitcoin fell from its all-time high, continuing its decline during European trading on Friday, nearing $95,000. This follows Bitcoin's recent peak of over $108,000. The downturn in the cryptocurrency market has affected altcoins like Ethereum and Dogecoin more severely. Additionally, U.S. exchange-traded funds (ETFs) directly investing in Bitcoin ended a 15-day streak of inflows, recording an outflow of $680 million, highlighting a shift in market sentiment.
With Christmas approaching, the market is expected to be relatively calm next week, though some significant data releases could still influence it. However, due to thin liquidity, market volatility might increase. Key points to watch in the upcoming week include the U.S. December Conference Board Consumer Confidence Index on Monday at 23:00 (UTC+8) and the initial jobless claims for the week ending December 21 on Thursday at 21:30 (UTC+8).
For the U.S. dollar, the Federal Reserve's overall hawkish stance suggests it will maintain its strength, despite potential volatility due to low trading volumes during the holiday period. Any market turbulence during the holidays is more likely to impact U.S. stocks and bonds negatively. The Fed's hawkish position has not been well-received on Wall Street, and with U.S. Treasury yields continuing to rise, sell-offs may intensify.
