by Tiffany Wang, WOO Analyst
The European Central Bank has chosen to keep existing interest rates unchanged, signaling a status quo in its monetary policy. Meanwhile, in the United States, the core Personal Consumption Expenditures price index exhibited a monthly uptick of 0.17%, translating to an annualized six-month trend of 1.9%. As we approach the imminent Federal Open Market Committee (FOMC) meeting next week, market sentiment strongly suggests a considerable likelihood that the Federal Reserve will opt to leave interest rates unaltered during this session.
US stocks surge to new highs, while BTC and ETH navigate volatile trading
Last week witnessed historic highs in US stocks, propelled by major technology companies such as Apple, Google, Microsoft, Meta, AMD, and Qualcomm, all scheduled to release their earnings reports this week. The market is keenly interested in the financial impact of AI products. The likelihood of a rate cut in March is currently below 50%, with most experts predicting the first rate cut to occur in May against a backdrop of declining inflation data and a resilient US dollar.
This week's Federal Reserve meeting is likely to maintain current interest rates. However, Jerome Powell’s remarks could significantly shape expectations for rate cuts in both March and May, exerting substantial influence on US stocks and Bitcoin.
Bitcoin showed a stronger weekly close last week, forming a wide fluctuation range between resistance at $43,000 and support at $36,000. Bitcoin is anticipated to sustain broad-ranging movements, with limited external news stimuli. Ethereum, trailing behind Bitcoin, has amassed significant liquidity within the $2,000 to $2,200 range. However, Ethereum currently lacks catalysts, with the upcoming Cancun upgrade emerging as a potential force that could propel it to outperform Bitcoin.
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