PANews reported on December 21 that this week, the Federal Reserve finally confirmed the long-anticipated 'pivot' in the market, and this week's statement and economic forecast update had a significant impact on the market. Market participants currently expect the Fed to cut interest rates by about 40 basis points by December 2025, causing US Treasury yields to rise accordingly. Earlier this week, Bitcoin fell from its historical high, and on Friday it continued to decline, approaching $95,000 at one point. Earlier, Bitcoin had just set a new historical high of over $108,000, and this round of decline in the cryptocurrency market has had a greater impact on altcoins like Ethereum and Dogecoin. In addition, US exchange-traded funds (ETFs) directly investing in Bitcoin also ended a 15-day inflow of funds this week, recording an outflow of $680 million, highlighting the shift in market sentiment.
With Christmas approaching, the market next week will be relatively calm, although there are still some relatively influential data points. However, due to thin liquidity, market volatility may become significant. Here are the key points the market will focus on in the coming week:
Monday 23:00, US Conference Board Consumer Confidence Index for December;
Thursday 21:30, US initial jobless claims for the week ending December 21.
For the dollar, with the overall hawkish stance within the Federal Reserve, it is expected that the dollar will not easily lose its throne earned this year, although the low trading volume during the holiday season may trigger some unnecessary volatility. Overall, if there is any market turmoil during the holiday season, it is more likely to impact the US stock and bond markets. The Fed's hawkish stance has not been welcomed by Wall Street, and as US Treasury yields continue to rise, the sell-off may intensify.
