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U.S. markets are set to open lower as a potential government shutdown looms, following the House's rejection of President-elect Trump's funding plan. Futures for the S&P 500 and Dow Jones fell, while FedEx shares surged 9% after exceeding profit expectations. In Europe, major indices declined, and Japan's inflation data exceeded forecasts, impacting the yen's value.
In the past 30 days, Internet Computer (ICP), Chainlink (LINK), and Hedera (HBAR) led crypto development activities, with ICP maintaining significant trading volumes. Meanwhile, Cardano (ADA) fell to fifth place, indicating a decline in development activity. The crypto market is thriving in 2024, with Bitcoin reaching $100,000 and growing adoption among American voters, particularly younger demographics.
XRP is showing signs of a potential surge, currently trading at $2.21 with a nearly 5% gain in the past 24 hours. Analysts are optimistic, citing the Bollinger Bands indicating a possible 490% price increase, potentially reaching an all-time high of $10.82, while some predict even higher gains if historical patterns hold. The outlook is further bolstered by anticipated regulatory changes under the incoming Trump administration, which may resolve ongoing legal issues affecting Ripple Labs and the SEC.
Dow Jones futures fell modestly after a Trump-backed bill to avoid a government shutdown failed, leading to a mixed close for major indexes. FedEx reported earnings that beat expectations but provided light guidance, while Nike's results were better than feared but also included weak guidance. Treasury yields continued to rise, posing challenges for the stock market rally, which struggled to maintain gains.
Jerome Powell, chair of the US Federal Reserve, ruled out the possibility of the Fed holding Bitcoin, citing legal restrictions under the Federal Reserve Act. His comments led to a 5.7% drop in Bitcoin's price, reflecting market concerns amid ongoing discussions about Bitcoin as a potential reserve asset, particularly following Donald Trump's pro-crypto stance and proposals from policymakers like Senator Cynthia Lummis. The broader cryptocurrency market also suffered losses, with Ethereum and Solana dropping significantly.
World Liberty Financial, backed by the Trump family, has acquired 231,726 ENA tokens for 250,000 USDC, increasing its total ENA holdings to 741,687. This purchase aligns with a broader strategy to diversify its crypto portfolio, which includes significant investments in Ethereum, Chainlink, and Aave. Ethena crypto has seen a price drop recently but remains popular among large investors, with 63% of holders currently profitable.
A recent crypto market sell-off triggered $1 billion in leveraged liquidations, primarily affecting long positions. Bitcoin, despite dropping below $96,000, has gained 130% this year, while the total crypto market cap fell 9.5% to $3.4 trillion. The Fed's hawkish stance following a rate cut decision has contributed to market volatility, with many traders viewing the pullback as a healthy correction.
U.S. stock futures dipped as a House Republican spending deal to prevent a government shutdown faltered, with significant opposition from within the party. Meanwhile, short selling activity has surged among major automakers, with Rivian shares plummeting over 43% in 2024. In extended trading, FedEx, Nike, and Mission Produce reported better-than-expected earnings, boosting their stock prices.
Cathie Wood's ARK Invest has sold nearly $4 million in Coinbase stock as Bitcoin and the broader crypto market experience a significant downturn following a recent all-time high. The firm offloaded 13,780 shares, while still holding over 2.45 million shares valued at $672 million. Bitcoin's price has dropped to around $97,430, reflecting a 7% decline in a day, amid a market correction triggered by a hawkish speech from Federal Reserve Chair Jerome Powell.
Dogecoin (DOGE) is anticipated to rebound from a significant 22% decline in December, despite struggling alongside a broader cryptocurrency market downturn that saw over $1.1 billion liquidated. Currently trading at $0.318, DOGE has dropped more than 18% in the last 24 hours but remains up 252% for the year. Predictions suggest a potential surge in January, with forecasts indicating a rise to $1.21 by March, driven by market dynamics and connections to influential figures like Elon Musk and Donald Trump.
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