Inflation eases, strong performance in U.S. stocks this year, BTC and ETH trading sideways, SOL and DOT showing strong momentum.

Last Friday, the US released the November Personal Consumption Expenditures (PCE) report, showing significant progress by the Federal Reserve in achieving its 2% annual inflation target, contributing to a strong performance in the US stock market this year. In the cryptocurrency market, there is still anticipation for the SEC to officially approve a Bitcoin spot ETF by mid-January. Bitcoin (BTC) and Ethereum (ETH) are trading sideways, while Solana (SOL) and Polkadot (DOT) are showing strong upward momentum.

PCE Index Hits Two-and-a-Half-Year Low

Last Friday, the U.S. released the Personal Consumption Expenditures (PCE) report for November, with the core PCE price index, a key inflation indicator monitored by the Federal Reserve, dropping to an annual rate of 3.2%, lower than the revised 3.4% in October and below market expectations, hitting the lowest level since April 2021.

According to a report by CNBC, on a six-month basis, core personal consumption expenditures rose by 1.9%, showing significant progress for the Federal Reserve in achieving its 2% annual inflation target.

This has strengthened market confidence in the Fed's rate cut next year. According to the CME FedWatch Index, investors expect a 93.3% probability of a rate cut by the Fed in March next year.

Quiet Market Trading During Christmas Holiday

Due to light trading ahead of the holiday, the three major U.S. stock indexes closed flat, with the Dow Jones Industrial Average down 0.05%, the Nasdaq up 0.19%, and the S&P 500 up 0.17%. The three indexes have been rising for eight consecutive weeks.

The U.S. stock market has delivered impressive results this year. The S&P 500 is up 23% year-to-date, the Dow Jones Industrial Average is up 12% year-to-date, and the tech-heavy Nasdaq has surged by 43%.

BTC, ETH Consolidate, SOL, DOT Show Strong Momentum

The leading cryptocurrencies Bitcoin and Ethereum have recently been in a consolidation phase, with various issuers frequently revising documents as the SEC requires submissions by the end of the month. The market is anticipating the SEC's formal approval of a Bitcoin spot ETF by mid-January.

BlackRock injected $10 million into a seed fund in January, with analysts predicting it aligns with the January approval forecast.

Among the top ten cryptocurrencies by market capitalization, SOL and DOT continue to show strong upward momentum. SOL officially broke the $100 mark over the weekend, with a weekly gain of 55%.

Polkadot's DOT ecosystem tokens also saw a general uptrend, with MOVR surging by 373% in the past seven days.