Although market sentiment rebounded on Friday, traders across asset classes have largely maintained a strong risk preference after the holiday, a preference that has dominated the market for most of 2024.

This week, the volatility index for the beautiful country's government bonds quietly rose, while US stocks experienced the worst year-end decline on record. The darling of global speculators, the largest ETF tracking Bitcoin, saw the largest outflow of funds in history. There are no signs of panic in the market, but the market trends do indicate a level of caution that has been virtually absent over the past 12 months, at least in the realm of risk assets. Concerns about Trump's policies and their impact on inflation have awakened the hedging market.

The pullback in certain assets, particularly US stocks, has also disrupted the historical pattern of the S&P 500 index often rising in the trading days following Christmas, highlighting the dangers of the pre-set script of the Trump 2.0 era. The shadow of policy uncertainty has left investors anxious, and the demand for protection across various assets continues to rise. The Cboe Volatility Index, which measures the cost of S&P 500 options, has climbed for four consecutive weeks. A similar measure for the beautiful country's government bonds—the ICE BofA Move Index—has reached a new high in a month, while the turbulence in high-yield bonds and currencies is also increasing.

Next week's non-farm payroll report will play a central role in influencing market sentiment. Here are the key points the market will focus on in the new week (all in Beijing time): $BTC $ETH $XRP