Inflation Slips, Impressive Performance of US Stocks This Year, BTC and ETH Range-bound, SOL and DOT Show Strong Upside Momentum
Last Friday, the US released the November Personal Consumption Expenditures (PCE) report, which showed significant progress by the Federal Reserve in achieving its 2% annual inflation target and led to impressive performance in the US stock market this year. In the cryptocurrency market, there is still anticipation that the SEC will officially approve a Bitcoin spot ETF by mid-January. BTC and ETH are in a consolidation phase, while SOL and DOT are showing strong upward momentum.
Contents:
Toggle
PCE Index Hits Two-and-a-Half-Year Low
Market Trading Remains Light During Christmas Holiday
BTC and ETH Consolidate, SOL and DOT Show Strong Momentum
The November PCE report, released by the US last Friday, revealed that the core PCE price index, the inflation indicator monitored by the Federal Reserve, dropped to a year-on-year growth rate of 3.2%, lower than the revised value of 3.4% in October and below market expectations, reaching its lowest level since April 2021.
According to CNBC, on a six-month basis, core personal consumption expenditures rose 1.9%, indicating significant progress by the Federal Reserve in achieving its 2% annual inflation target.
This has deepened market confidence in the Federal Reserve’s interest rate cuts next year. According to the CME FedWatch Index, investors expect a 93.3% probability of a rate cut by the Federal Reserve in March next year.
Affected by light market trading before the holiday, the three major US stock indices closed flat. The Dow Jones Industrial Average fell 0.05%, the Nasdaq Composite Index rose 0.19%, and the S&P 500 Index rose 0.17%. The three major indices have been rising for eight consecutive weeks.
The US stock market has delivered impressive performance this year. The S&P 500 Index has risen 23% year-to-date, the Dow Jones Industrial Average has risen 12% year-to-date, and the technology-focused Nasdaq Composite Index has risen as much as 43%.
Bitcoin and Ethereum, the leading cryptocurrencies, have recently shown a consolidation pattern, with various issuers frequently revising documents. The SEC has requested submissions by the end of the month, and the market expects the SEC to officially approve a Bitcoin spot ETF by mid-January.
Meanwhile, among the top ten cryptocurrencies by market capitalization, SOL and DOT continue to show strong upward momentum. SOL officially broke the $100 mark over the weekend, with a weekly gain of 55%. The ecosystem token of Polkadot (DOT) also experienced a general upward trend, with MOVR seeing a 373% gain in the past week.
BTC, DOT, PCE index, SOL, US stock market
Related Reading:
Bitcoin Hits New High for the Year, ADA, AVAX, DOT Perform Well
Polkadot 2.0 Cancels Parallel Chain Slot Auction to Improve Ecosystem Efficiency
