Weekly Outlook: As we get to the end of 2024, there are some big things happening in both the economy and the world of crypto. Here’s what you need to know in simple terms:
Economic Stuff
- GDP Report: On the 26th of December, there’s a report coming out that tells us how much the U.S. economy grew in the last few months. They think it might be about 2.9% growth. If it’s higher, people might feel good about money, including those who invest in cryptocurrencies.
- Jobless Claims: Also on the 26th, we’ll find out how many people are out of work. If fewer people than expected are looking for jobs, it could mean the economy is doing well, which might make people more likely to invest in risky things like crypto.
Crypto and Money Stuff
- Fed’s Rate Decision: The Federal Reserve decided to lower interest rates a little bit, but everyone knew this was coming. So, what really got people talking was:
- Fewer Rate Cuts in 2025: They’re now thinking there will be only two small rate drops next year, not three or four. This might make borrowing money more expensive for longer, which could make people less eager to buy cryptocurrencies.
- Higher Inflation Expectation: They think prices will go up more than they thought before, changing how people might invest.
- Mixed Signals from the Fed: Not all Fed people agree on how many times they should cut rates, causing some worry in the markets.
- Jerome Powell on Bitcoin: Powell, who leads the Fed, said they can’t own Bitcoin because of laws, and changing those laws is up to Congress, not the Fed. This might mean don’t expect the Fed to help Bitcoin anytime soon.
- MiCA and USDT: In Europe, by December 30, they’re making a rule that says exchanges can’t offer USDT. This could change where people trade or invest, maybe pushing them towards Bitcoin or maybe USDC regardless, this counts as extremely bearish news as a huge part of the altcoin market is .
What’s Next for Bitcoin?
Looking forward to 2025, here’s what people are thinking about Bitcoin:
- More Big Investors: Even with the Fed being cautious, Bitcoin might still attract big investors because of things like ETFs and countries’ contests over who has the most Bitcoin.
- Clearer Rules: With more rules like MiCA, Bitcoin might get an even clearer path because it’s the most known cryptocurrency.
In short, this Weekly Outlook shows that this week is going to be a big deal for figuring out what to expect in the new year for both regular money and crypto. The Fed’s predictions and what Powell says about Bitcoin, along with these economic reports, will shape what investors think and do next. This is not financial advice; the audience should always do your own research (DYOR). You can also DYOR on blog.millionero.com. If you’re feeling confident, you can come trade spot and perpetuals on Millionero.