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

The PCE indicator released last Friday showed moderate inflation increase, and the US stock market finally rebounded from Powell's hawkish interest rate cuts.

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

🔹 PCE indicator shows moderate inflation increase:

The Fed's preferred inflation indicator, the Personal Consumption Expenditures Price Index (PCE), rose by 0.1% in November after an unadjusted increase of 0.2% in October. The annual growth rate 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 to keep the US government operating until mid-March and sent the bill to President Biden for signature. This bill avoided the crisis of some US government agencies shutting down during the Christmas holiday, but it only temporarily postponed the problem until next March.

🔹 Cryptocurrency market decline:

Since Trump won the US election last month, Bitcoin has seen its first weekly decline, due to the cautious policy outlook from the Federal Reserve undermining the optimism sparked by the president-elect's embrace of the cryptocurrency industry. According to CoinGecko data, Bitcoin's weekly decline was 7.9%, Ethereum's drop reached 15.7%, and the original meme coin Dogecoin plummeted by 22.3%.

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