What to Know
Crypto Daybook Americas will take a two-week break starting Monday, returning on January 7 with fresh updates on industry developments. We extend our best wishes for a joyous holiday season!
Key Insights
If you aimed for a peaceful Christmas expecting Bitcoin to steadily climb, you may need to adjust your expectations due to recent remarks from the Fed.
Chair Jerome Powell's statements distancing the central bank from potential strategic Bitcoin reserves under the upcoming Trump administration suggest a cautious market approach from traders awaiting clearer signals.
Concerns over rate projections loomed large, as Fed officials predict just two rate cuts in 2025 with a benchmark drop from 4.25%-4.5% to 3.9%. This speculation has led the market to question the sustainable decline below 4% if inflation or job strength persists.
Market Reaction
Concerns for Ether
The recent rise in yields might disrupt growth in risk-sensitive assets including Ethereum, traditionally seen as a stable investment. Meanwhile, Bitcoin fell below the $100,000 mark, impacting the overall market negatively.
While pullbacks are common in crypto bull markets, the outlook continues on a positive note. "In the wake of potential volatility tied to Trump’s presidency, cryptocurrency could still witness bullish trends over the long haul," noted Valentin Fournier, an analyst at BRN.
Key Events to Watch
- Dec. 19, 12:00 p.m.: Coinbase to delist BiT Global’s wrapped Bitcoin.
- Dec. 23: MicroStrategy stock joins the Nasdaq-100 Index.
- Dec. 30: European Union fully implements Markets in Crypto-Assets Regulation.
- Jan 3: Celebrating Bitcoin Genesis Day.
Continually assess these signals as the market fluctuates, keeping an eye on developments heading into the new year.
