US inflation data exceeds expectations, Bitcoin falls back after breaking $100,000.

1. Market Focus

1. Macroeconomic Trends

Inflation data exceeding expectations triggers market volatility

The latest statistics show that in November, the Producer Price Index (PPI) in the United States increased by 0.4% month-on-month, higher than the market expectation of 0.2%, marking the largest increase in six months. Year-on-year, it grew by 3%, the highest since February of this year, exceeding the expected 2.6%. This data reflects rising inflationary pressures.

Despite the market's general expectation that the Federal Reserve will cut interest rates by 25 basis points at next week's meeting, the latest PPI data has added uncertainty to the outlook for rate cuts in 2024. As a result, the three major U.S. stock indices fell collectively. The Dow Jones Industrial Average declined for six consecutive days, closing down 0.53%; the S&P 500 fell by 0.54%; and the Nasdaq Composite dropped by 0.66%. Tech giants showed weak performance, with Nvidia and Tesla dropping 1.41% and 1.57%, respectively.

Investors are confused about the future direction of the Federal Reserve's policy. Although a rate cut in December has been largely priced in by the market, unexpectedly rising inflation data has raised doubts about the pace of rate cuts next year.

2. Cryptocurrency Market Dynamics

Political rhetoric and economic data dual impact Bitcoin price volatility

The cryptocurrency market has experienced significant volatility. Trump stated during the opening ceremony of the New York Stock Exchange that he would achieve major goals in the cryptocurrency space, briefly pushing Bitcoin's price above $102,000. However, influenced by the performance of U.S. stocks and PPI data, Bitcoin quickly fell back below $100,000, leading to a general decline in the entire cryptocurrency market.

Nevertheless, the decentralized finance (DeFi) sector has performed remarkably well, primarily stimulated by World Liberty Financial (WLFI), a Trump-related project, purchasing Ethereum, AAVE, and Chainlink. WLFI currently holds approximately $74.9 million in crypto assets, with Ethereum being its largest holding, seen as a signal of the Trump camp's optimism about Ethereum's potential and possibly an initial layout of its crypto strategy.

Hot Topics

1. Proposal for Financial Regulatory Reform

According to reports, Trump's team is exploring a restructuring plan for financial regulatory agencies. Insiders revealed that Trump's advisors asked questions about the abolition of the Federal Deposit Insurance Corporation (FDIC) when interviewing potential candidates for banking regulatory positions. They also inquired about potential candidates for the FDIC and the Office of the Comptroller of the Currency (OCC). Trump's team proposed plans to merge or completely reform the FDIC, OCC, and the Federal Reserve, aiming to improve government regulatory efficiency.

2. NFT projects遭遇黑客攻击

On December 13, Chill Guy image creator Phillip Banks posted on social media, emphasizing that the Chill Guy image and rights will never be involved in the cryptocurrency field. He accused certain groups of spreading hatred, attacking families, and profiting from his personal art without authorization. Banks stated that he would take legal action against these crypto platforms.

Subsequently, Banks clarified on Instagram that his social account was hacked and he is currently still unable to access it normally. Some of the radical comments posted earlier were not made by him. According to data, after the tweets related to "crypto hate speech" were published, the price of CHILLGUY briefly plummeted by 15%, but quickly recovered, essentially erasing the decline. The community speculates that this incident may be a planned "wash trading" operation.

3. Industry Development

Cryptocurrency payments make breakthroughs in the travel industry

A travel agency that supports cryptocurrency payments recently announced that its annual revenue has exceeded $100 million, marking further application of cryptocurrency in the tourism industry. The company also launched a native token and a Bitcoin reserve strategy. This news quickly attracted market attention, driving a significant increase in the price of its tokens.

It is reported that the travel agency received investment from well-known industry figures as early as the end of 2019. As an online travel agency, the platform offers booking services for flights, accommodations, and activities, supporting payments in over 100 cryptocurrencies and fiat currencies. By integrating blockchain technology, the platform aims to enhance the user experience in travel booking.

After the related news spread, the company's token price skyrocketed from $0.7647 to $2.8 in less than 30 minutes, then reached a near 24-hour high of $3.38, marking a new high since November 2021, with a cumulative increase of 342%.

4. Emerging Projects Focus

AI robots are emerging in the crypto community

In the complex world of cryptocurrencies, an AI robot named GwartyGwartBot is gradually attracting attention. With its unique zero-knowledge Snark perspective, it has become the "humorous and harmonious soul" on social media. Although creating AI robots is relatively easy, reinterpreting classic figures within the crypto circle is still considered a valuable task.

The project has recently attracted attention and shares from well-known figures in the industry, further enhancing its influence within the community.