After the Federal Reserve's heavy blow, the US stock and cryptocurrency markets face ongoing adjustments
News on December 20, U.S. stocks fell back after a uniform rise at the beginning of Thursday's session, with only the Dow Jones Industrial Average barely closing up by 0.04%, ending its first ten-day consecutive decline since the 1970s. The SP 500 index closed down by 0.09% and Nasdaq Composite Index was down by 0.10%.
Cryptocurrency-related stocks generally fell, with "Bitcoin whale" MSTR falling by 6.63% and Coinbase dropping by 2.21%. The cryptocurrency market is once again under pressure; Bitcoin rebounded from a high of $98,000 yesterday to $102,000 before starting another round of declines, reaching as low as $95,700 around five o'clock this morning and currently trading at $96,812 - a drop of about 3.8% in the last twenty-four hours.
Ethereum broke below $3400 USD with a decrease of approximately six point six percent over twenty-four hours while altcoins experienced even more significant drops exceeding ten percent across the board.
The total liquidation volume for cryptocurrencies reached one billion three million dollars while Bitcoin spot ETF saw an outflow of six hundred seventy-four million dollars yesterday.
Market sentiment is depressed with bearish signals increasing.
In terms of major foreign exchange rates: The dollar index rose by .35%, continuing to reach new highs not seen in over two years; cautious monetary policy has raised concerns that weak economic activity could reduce oil demand next year causing oil prices to fall on Thursday; gold prices surged then retreated slightly rising .2%. After Federal Reserve hawkish rate cuts and expectations that easing will slow next year US stocks gold and crypto markets are all under pressure.
Especially in these past few days where we've seen significant pullbacks within the cryptocurrency market indicating it has entered into deep adjustment period which may continue to be pressured short term however overall market sentiment remains positive believing this round of adjustments provides strategic opportunities for patient long-term investors.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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