📉 Cryptocurrency faces a drop in the first week after Trump's election, Arthur Hayes predicts again!

The PCE index released last Friday shows moderate inflation rise, and the US stock market finally rebounded from Powell's hawkish rate cuts.

However, cryptocurrency experienced a drop in the first week after Trump's election. BitMEX founder Arthur Hayes accurately predicted last week that the cryptocurrency market would undergo a painful decline around Trump's inauguration on January 20, 2025.

🔹 PCE index shows moderate inflation rise:

The Federal Reserve's preferred inflation indicator, the Personal Consumption Expenditures Price Index (PCE), rose 0.1% in November after an unadjusted rise of 0.2% in October. The year-on-year increase is 2.4%, slightly below economists' estimate of 2.5%.

🔹 US temporarily avoids government shutdown crisis:

The US Senate passed a funding support bill at the last moment, maintaining the operation of the US government until mid-March, and sent the bill to President Biden for signing. This bill avoided the crisis of some US government units shutting down during the Christmas holiday, but it only temporarily postponed the issue until March next year.

🔹 Cryptocurrency market declines:

Since Trump's victory in last month's US election, Bitcoin has seen its first weekly decline, as the cautious policy outlook from the Federal Reserve weakened the optimism triggered by the president-elect's embrace of the cryptocurrency industry. According to data from CoinGecko, Bitcoin's weekly decline is 7.9%, Ethereum's decline reaches 15.7%, and the original meme coin Dogecoin has dropped as much as 22.3%.

Arthur Hayes predicts that the cryptocurrency market will experience a painful decline around Trump's inauguration on January 20, 2025. His family office Maelstrom will preemptively reduce some positions, hoping to repurchase part of the core positions at a lower price sometime in the first half of next year.