$BTC There was a sharp drop in the early trading, and the price once fell to $40,400, and continued to fluctuate downward in the past two days. At the same time, the total amount of liquidation in the entire network exceeded $328 million, and more than 100,000 investors were liquidated.
At the beginning of last week, the market was still optimistic, and more than a month ago, it was mentioned that the Christmas market had arrived early. However, the recent big market has complicated the market sentiment.
Last week's non-farm data performed well, with 199,000 new jobs, exceeding market expectations and the previous value, and the unemployment rate dropped to 3.7%, which is good news for the market. The 4% year-on-year increase in wages also had a positive impact on the market.
The University of Michigan's one-year inflation expectations fell sharply, which supported the intraday rise of U.S. stocks after opening high and falling on Friday night.
Since the end of October, the market has been mainly affected by lower inflation and a slowing labor force, which has strengthened market expectations for interest rate cuts next year. At the same time, the economic fundamentals are strong and not enough to trigger recession concerns, which has jointly driven the optimistic market sentiment. Last Friday's non-farm data may revise the market's expectations for interest rate cuts next year.
In addition, the Treasury Department will auction debt again on Monday and Tuesday this week, especially the 10-year US Treasury bonds worth US$37 billion. Any failure in the issuance may trigger a chain reaction in the market. At the same time, the rebound in US Treasury yields has reached a pressure point and may rise in the short term. This week's interest rate meeting has also attracted much attention. It is expected that there will be no interest rate hike, but the market will pay attention to economic forecasts, dot plots, and the views of FOMC voting members on the economic trend and interest rate expectations for next year.
In general, the financial stress index is still hovering at the low point of the year, the balance of the Ministry of Finance account is being spent again, and the market liquidity is relatively abundant. However, market sentiment may be slightly corrected this week, and institutions may have the need to take profits and settle at the end of the year. In the medium term, the market may continue to rise after the adjustment, inflation expectations will decline, CPI will slow down but at a relatively low level, and the labor market will also weaken in the future.
