This week, the Federal Reserve finally confirmed the long-anticipated 'pivot' by the market. The central bank's statement and updates to economic forecasts this week have 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, leading U.S. Treasury yields to rise in response. Earlier this week, Bitcoin fell from its historical high, and on Friday, during the European session, Bitcoin continued its downward trend, nearing $95,000. Earlier, Bitcoin had just set a new historical high of over $108,000, and this round of declines in the crypto market has had an even greater impact on altcoins like Ethereum and Dogecoin. Additionally, U.S. exchange-traded funds (ETFs) that directly invest in Bitcoin also ended a 15-day streak of inflows this week, recording an outflow of $680 million, highlighting the shift in market sentiment. With Christmas approaching, the market is expected to be relatively calm next week, although there are still some influential data points to watch. 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, U.S. Conference Board Consumer Confidence Index for December; Thursday 21:30, U.S. initial jobless claims for the week ending December 21. For the U.S. dollar, with the overall hawkish stance within the Fed, it is expected that the dollar will not easily lose its position gained this year, although low trading volumes during the holiday period may trigger some unnecessary volatility. Overall, if any market turbulence occurs during the holiday period, it is more likely to impact U.S. stocks and bonds. The Fed's hawkish stance has not been welcomed on Wall Street, and with U.S. Treasury yields continuing to rise, selling pressure may intensify. (Jin Shi)

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