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Bitcoin (BTC) and major cryptocurrencies faced significant losses, with BTC dropping 4.2% and Dogecoin (DOGE) plummeting 11%, extending its weekly decline to over 21%. The downturn followed a hawkish FOMC meeting, triggering a selloff across risk assets, including a 3.5% drop in Nasdaq and a 2.9% decline in the S&P 500. Traders noted that overly bullish market sentiment prior to the meeting left the market vulnerable to shocks, despite December typically being a bullish month for BTC.
Today, the crypto market faces $2.62 billion in expiring Bitcoin and Ethereum options, which could lead to significant volatility. Bitcoin options total $2.02 billion with a maximum pain price of $110,000, while Ethereum options are valued at $598.99 million, with a maximum pain price of $3,700. Traders should prepare for potential price movements as these expirations often influence market dynamics.
El Salvador purchased 11 Bitcoin worth $1 million just a day after securing a $1.4 billion deal with the IMF, which imposed limits on the country's cryptocurrency dealings. This acquisition breaks its previous pattern of buying one Bitcoin daily, raising its total holdings to approximately 5,980.77 BTC, valued at around $580 million. Despite the IMF's stipulations, the National Bitcoin Office indicated that the government would continue to buy Bitcoin, emphasizing its commitment to the cryptocurrency strategy.
Asian shares fell to a three-month low as investors awaited crucial U.S. inflation data, with the dollar reaching a two-year peak. The Bank of Japan's dovish stance and steady lending rates contributed to the yen's decline, while U.S. Treasury yields surged, reflecting market concerns over economic policy and geopolitical uncertainty.
The SMI is lower in pre-market trading as US stock markets close little changed following an interest rate shock, with Micron weighing on the Nasdaq. The Chinese central bank maintained key interest rates amid economic challenges, while the Shanghai stock exchange rose 0.5%. Geopolitical uncertainties and policy shocks are expected to influence markets significantly in 2025, as highlighted by TD Securities' James Rossiter. The Chinese economy faces a real estate crisis, compounded by potential tariffs from US President-elect Donald Trump.
Bitcoin's recent price trajectory mirrors past cycles, with long-term holders realizing $2.1 billion in profits as they began selling at the $100K mark. However, Bitcoin, Ethereum, and Ripple experienced significant declines this week, collectively wiping out $1.17 billion from the market. The overall cryptocurrency sector valuation fell below $3.5 trillion, reflecting a $400 billion sell-off triggered by a hawkish Federal Reserve stance.
Asian shares showed mixed results as markets awaited U.S. personal spending data. Japan's core inflation rose to 2.7%, prompting a stronger dollar against the yen. Meanwhile, U.S. markets faced volatility, with the S&P 500 still on track for a strong year despite recent fluctuations.
Asian shares showed mixed results as markets awaited U.S. personal spending data. Japan's core inflation rose to 2.7% year-on-year, prompting a stronger dollar against the yen. Meanwhile, U.S. Treasury yields fluctuated amid mixed economic reports, with the S&P 500 still on track for a strong year despite recent market struggles.
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.
Asian shares showed mixed results as markets awaited U.S. personal spending data. Japan's core inflation rose to 2.7% year-on-year, prompting the dollar to strengthen against the yen. Meanwhile, the S&P 500 remains on track for a strong year despite recent market struggles, with traders adjusting expectations for future interest rate cuts by the Federal Reserve.

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