Crypto Assets market Fluctuation intensifies, Trump's remarks attract follow

Macroeconomic Environment

The Producer Price Index (PPI) data for the United States in November exceeded expectations, indicating that inflation has warmed up. The PPI rose by 0.4% month-on-month and 3% year-on-year, both higher than market expectations. This data adds uncertainty to the outlook for future interest rate cuts by the Federal Reserve.

As a result, the three major U.S. stock indices fell collectively. The Dow Jones Industrial Average dropped by 0.53%, the S&P 500 fell by 0.54%, and the NASDAQ Composite decreased by 0.66%. Large tech stocks performed poorly, with Nvidia and Tesla falling by 1.41% and 1.57%, respectively.

Although the market generally expects the Federal Reserve to keep interest rates unchanged at next week's meeting, the unexpected rise in PPI data has raised investors' doubts about the pace of interest rate cuts next year.

Crypto Assets Market

The Crypto Assets market has experienced significant Fluctuation. Trump made a statement on the New York Stock Exchange, indicating that he will achieve major goals in the encryption field, which temporarily pushed the price of Bitcoin above $102,000. However, influenced by the US stock market and PPI data, Bitcoin quickly fell back below $100,000, leading to a general decline in the entire Crypto Assets market.

Nevertheless, the decentralized finance (DeFi) sector has performed strongly. World Liberty Financial (WLFI) has purchased Ethereum (ETH), AAVE, and Chainlink (LINK), currently holding crypto assets worth approximately $74.9 million, with Ethereum being the largest holding. This is seen as a positive outlook on Ethereum's potential and may represent an early positioning for future crypto strategies.

Hot Events

Financial Regulatory Reform Discussion

According to reports, a certain political team is exploring the possibility of abolishing or merging financial regulatory agencies. They have considered issues such as the abolition of the Federal Deposit Insurance Corporation (FDIC) and have inquired about potential candidates for the FDIC and the Office of the Comptroller of the Currency (OCC). The team has proposed plans to merge or reform the FDIC, OCC, and the Federal Reserve, aiming to improve government regulatory efficiency.

Chill Guy image controversy

On December 13, Phillip Banks, the artist who created the Chill Guy image, posted on social media emphasizing that the Chill Guy image and rights do not involve Crypto Assets. He accused certain groups of profiting from his personal art without permission. Banks then clarified that his social accounts had been hacked, and some radical statements were not made by him. The price of CHILLGUY briefly dropped by 15% after the related news was released but quickly rebounded. The community speculated that this incident might be a planned market operation.

Industry Trends

The travel agency Travala, which supports Crypto Assets payments, announced annual revenue exceeding $100 million, marking further application of Crypto Assets in the tourism industry. The company has launched a native token AVA and a fund reserve strategy for Bitcoin. A well-known Crypto Assets figure retweeted this news, driving the price of AVA from $0.7647 to $3.38, reaching a new high since November 2021, with a cumulative increase of 342%.

Travala, as an online travel agency, provides flight, accommodation, and activity booking services, accepting multiple Crypto Assets and fiat payments. The platform integrates blockchain technology to enhance the user's travel booking experience.

Emerging Projects

An AI robot project named GwartyGwartBot has attracted the attention of the crypto community. The project features zero-knowledge Snark (GWART) and stands out in a mixed information environment, becoming the "humorous and harmonious soul" of the community. Although the development of AI robots is relatively easy, the project reinterprets the concept of social media personalities, gaining the attention and retweets of well-known industry figures.