Last Friday, the US released the Personal Consumption Expenditures (PCE) report for November, which showed significant progress by the Federal Reserve in achieving its 2% annual inflation target. This has also contributed to the impressive performance of the US stock market this year. In the cryptocurrency market, there is still anticipation for the Securities and Exchange Commission (SEC) to officially approve a Bitcoin ETF in mid-January. BTC and ETH are currently trading in a range, while SOL and DOT are showing strong upward momentum.
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PCE Index Hits Two-and-a-Half-Year Low
Market Trading Remains Light During the Christmas Holiday
BTC and ETH Trading in a Range, SOL and DOT Showing Strong Momentum
The PCE report for November, released by the US last Friday, showed that the Federal Reserve’s targeted inflation indicator, the core PCE price index, fell 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 by 1.9%, indicating significant progress by the Federal Reserve in achieving its 2% annual inflation target.
This deepens market confidence in the Federal Reserve’s interest rate cut next year. According to the CME FedWatch Index, investors expect a 93.3% probability of an interest rate cut by the Federal Reserve in March next year.
Affected by light market trading before the holiday, the three major US stock indexes closed flat. The Dow Jones Industrial Average fell by 0.05%, the Nasdaq Index rose by 0.19%, and the S&P 500 Index rose by 0.17%. The three major indexes have been rising for eight consecutive weeks.
The US stock market has delivered impressive results this year. The S&P 500 Index has risen by 23% year-to-date, the Dow Jones Industrial Average has risen by 12% year-to-date, and the technology-focused Nasdaq Index has risen by 43%.
The leading cryptocurrencies, Bitcoin and Ethereum, have recently entered a range trading pattern. Various issuers have been revising documents frequently, and the SEC has requested submission by the end of the month. The market expects the SEC to officially approve a Bitcoin spot ETF in mid-January.
Meanwhile, SOL and DOT, among the top ten cryptocurrencies by market capitalization, are still showing strong momentum. SOL broke the $100 mark over the weekend, with a weekly gain of 55%. The ecosystem token of Polkadot (DOT) has also experienced a general upward trend, with MOVR seeing a 373% gain over the past seven days.
BTC: Bitcoin
DOT: Polkadot
PCE Index: Personal Consumption Expenditures Index
SOL: Solana
US stock market
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