Crypto markets have held steady over the weekend, aside from another minor manipulated leverage blip late on Sunday, which is becoming a bit repetitive now. Volatility may increase, but a quarter-point rate cut at this week’s main event, the Federal Open Market Committee’s monetary-policy meeting on Tuesday and Wednesday, has largely been priced in. It is not a heavy week for economic data, but there are a few things to keep an eye on.
Economic Events Dec. 8 to 12
Tuesday will see the release of the September and October job openings reports, while Thursday will see initial jobless claims. These paint a clear picture of the US labor market, which is one of the Fed’s mandates for monetary policy decisions. The US central bank announces its monetary policy decision on Wednesday and is widely expected to cut rates by a quarter of a percentage point to 3.5% – 3.75%. According to the CME Fed Watch Tool, there is currently an 88.4% probability of this.
The Fed will also release its quarterly Summary of Economic Projections, which may provide insight into the number of rate cuts expected next year. Markets are pricing in a roughly 3% federal-funds rate by December 2026, “a much more aggressive easing cycle than currently forecast by the central bank,” Barrons reported.
Key Events This Week:
1. September JOLTS Job Openings data – Tuesday
2. December Fed Interest Rate Decision – Wednesday
3. Fed Chair Powell Press Conference – Wednesday
4. OPEC Monthly Report – Thursday
5. Initial Jobless Claims data – Thursday
6. US 30Y Bond Auction -…
As inflation cools and growth stays relatively firm, sentiment remains positive heading into year-end. However, some uncertainty is still lingering around trade tariffs, consumer demand, and Fed policy, which may keep investors cautious. US stock futures were steady on Sunday night after another bumper week for Wall Street, while crypto markets remained steady.
Crypto Market Outlook
Total market capitalization inched up late on Sunday to reach $3.18 trillion, following another apparent manipulation flush that hit longs and shorts. Bitcoin swung lower, dipping below $88,000 during Sunday trading before bouncing back to $91,500 twice in the hours that followed. The asset is currently holding steady at $91,200 but faces heavy resistance above this level.
Ethereum mirrored the move, briefly dropping below $3,000 only to bounce back to reclaim the $3,100 level at the time of writing. Most of the altcoins were generally trading sideways this Monday morning in Asia.