Price Action:
BTC
Bitcoin fell 2.13% over the past 24 hours, dropping from $104,487 to $102,299. It peaked at $104,969 before dipping to $98,837, with heavy trading around $100,700. A rebound could push prices to test resistance at $106,617 if buying interest strengthens.
ETH
Ethereum declined 4.4% in the last 24 hours, sliding from $3,859 to $3,689. It hit a high of $3,898 and a low of $3,543. Holding above $3,542 and breaking $3,880 resistance could pave the way for a rally toward $4,000.
Friday
*Cryptocurrencies are facing sharp declines today as traders continue to unwind positions following the Federal Reserve’s latest decision. Bitcoin, which had surged earlier this week to a record high above $108,000, fell below $93,000. Smaller tokens like Ethereum are also seeing significant losses.
*US stocks are poised for further declines amid concerns over a diminished outlook for interest rate cuts and the risk of a government shutdown. The S&P 500 is on track for its steepest weekly drop since September, with futures tied to the index falling 0.9%. The Nasdaq 100 slipped 1.4%, driven by declines in major tech names such as Tesla and Nvidia. In Europe, the Stoxx 600 dropped 1.7%, with Novo Nordisk plunging on disappointing trial data.
*Market volatility has surged recently as the Federal Reserve’s hawkish stance raises doubts about the sustainability of this year’s tech-driven rally in a high-interest-rate environment, despite signs of resilience in the US economy.
*Upcoming events could further impact markets. November’s personal consumption expenditures data, a key inflation gauge for the Fed, will offer insights into the 2025 interest rate trajectory. Meanwhile, Friday’s “triple witching” options expiration, involving $6.5 trillion in contracts, could create additional turbulence, marking the year’s largest event of its kind.
Thursday
Wall Street Rebound
*S&P 500 futures up 0.7%, Dow Jones futures up 0.5%.
Recovery follows a sharp selloff due to fewer-than-expected Fed interest rate cuts projected for 2025.
Federal Reserve Updates
*Key interest rate cut by 0.25% to 4.25%-4.5% range.
Fed officials project two rate cuts in 2025, down from four forecasted earlier.
Market Performance (Wednesday)
*S&P 500: -3% (nearly the biggest loss in 2024).
*Dow Jones: -2.6% (-1,123 points), Nasdaq: -3.6%, Russell 2000: -4.4%.
*Fed Chair Powell highlights uncertainties due to a new U.S. administration and potential tariff impacts.
Wednesday
*US stocks showed little direction as investors awaited the Federal Reserve’s final 2024 policy decision. A quarter-point rate cut is expected Wednesday, but focus has shifted to 2025, with inflation easing slowly and the economy staying resilient. Uncertainty also stems from potential policy shifts under President-elect Donald Trump.
*The Fed previously forecast a full percentage point of rate cuts for 2025, similar to this year’s easing. However, markets now expect fewer cuts next year, with less than two 25 basis-point reductions likely after Wednesday’s move. The 10-year Treasury yield, up 80 basis points since September, held steady, while November housing data showed an unexpected decline.
*Wall Street sees fewer rate cuts ahead, but some traders anticipate the Fed may stick closer to its September projection of four quarter-point reductions. Equities showed waning momentum, with Tuesday marking the 12th straight day of more decliners than advancers, led by tech stocks.
*In Brazil, markets are under pressure as faith in the government’s handling of its fiscal crisis erodes. The real is down 21% against the dollar this year, making it the worst-performing currency over the last four sessions. The Ibovespa index has dropped 3.8%.
Tuesday
*US equities slipped, led by declines in technology stocks, as traders assessed strong US retail sales data and looked ahead to the Federal Reserve’s upcoming rate decision and forecasts.
*Retail sales in November grew at a solid pace, highlighting consumer resilience during the critical holiday season.
*Attention now shifts to the Fed’s final rate decision of the year on Wednesday, where a quarter-point cut is widely expected. However, uncertainty remains about the trajectory of rate adjustments in the coming months. While the US economy shows strength, concerns over potential inflationary import tariffs under the incoming Trump administration may influence the Fed’s approach.
*Bitcoin hit a new all-time high for the second day in a row, with traders setting sights on the $110,000 level.
Monday
*US equity futures defied declines in other major markets as traders braced for a series of central bank interest-rate decisions this week. Bitcoin reached a new all-time high.
*Nasdaq 100 futures rose 0.4%, signaling further gains after Friday’s record close. MicroStrategy climbed over 3% in premarket trading, boosted by its upcoming inclusion in the index after its pivot to a Bitcoin-focused strategy. S&P 500 futures also gained 0.2%.
*The FED rate decision on Wednesday will be followed by policy updates from Japan, the Nordics, and the UK. Traders now anticipate about three quarter-point rate cuts by the Fed over the next year, scaling back expectations of a fourth cut seen just a week ago.
*US markets contrasted with losses in Asia and Europe, where weaker Chinese retail data and euro-area private sector contraction dampened sentiment.
*A potential Fed rate cut could sustain US stocks’ rally, with the S&P 500 up 27% in 2024. Optimism around economic policies under President-elect Trump and strong earnings continues to fuel expectations for further gains.
