US stocks continue to rise, while Bitcoin and Ethereum, after falling below the moving average, continue to trend upwards.

The US stock market continues to rise, with the Dow Jones Industrial Average hitting a new closing high for the fourth consecutive trading day, and the S&P 500 Index maintaining its momentum of seven consecutive weeks of gains, just 1.2% below its all-time high. Bitcoin and Ethereum experienced a sharp decline yesterday, but quickly rebounded after breaking below the monthly trend line, with the cryptocurrency market undergoing $2.23 billion in forced liquidations within 24 hours.

US Stocks Continue to Rise, GDP and PCE Data in Focus This Week

The Federal Reserve (Fed) maintained interest rates last week, with most officials expecting at least three rate cuts by 2024. This shift in sentiment towards optimism among investors was evident as the yield on the 10-year US Treasury, which had previously neared the high of 5%, fell below the 4% mark. The stock market benefited from the optimistic sentiment surrounding the impending rate cuts, leading to a sustained uptrend.

The Fed maintains interest rates, potential for three rate cuts next year, US stocks rally, BTC approaches 43K

Although several Fed officials attempted to dampen market optimism, the impact seems limited. Cleveland Fed President Loretta Mester stated that the next policy phase is not about "when to cut rates," but rather how long to maintain the restrictive monetary policy to ensure sustainable inflation achieving the 2% target.

The US Department of Commerce is set to release the final third-quarter Gross Domestic Product (GDP) figure on Thursday, the 21st, and the Personal Consumption Expenditures (PCE) price index report on Friday, which will be the focus of investors this week.

BTC, ETH Fall Below Moving Averages Before Rebounding

Bitcoin briefly fell below the 25-day moving average trendline since September yesterday, dropping to a low of 40,542 before rebounding later in the evening alongside the rise in US stocks, nearing 43K at the time of writing.

End of the Bitcoin bull market? First 33 million USD net outflow in 11 weeks

Ethereum's trend followed a similar pattern, falling below the 2,200 level of the 25-day moving average trendline, only to rise again, with the price around 2,231 USD at the time of writing.

According to Coinglass data, the cryptocurrency market experienced forced liquidation of 223 million USD in the past 24 hours, with BTC accounting for 62.72 million USD, ETH for 34.49 million USD, and other currencies totaling 45.2 million USD in liquidation amounts. This indicates that while the leading cryptocurrencies Bitcoin and Ethereum take a breather, the rise in other altcoins has also fueled the atmosphere of the crypto bull market.