Inflation Is Back!

Welcome back to the Daily Coinsauce Newsletter! Let’s dive into today’s updates—there’s a lot to unpack!

📅 Today

S&P 500 Crashes Hard 📉 

The S&P 500 fell over 3% in its largest post-Fed drop since March 2020, after the Fed cuts rates by 25 basis points, but raises inflation forecast.

The Fed reduced their outlook from 3 to 2 rate cuts in 2025 and raised inflation expectations from 2.1% to 2.5%.

SUMMARY OF FED DECISION (12/18/24):

1. Fed cuts rates by 25 bps for a total of 100 bps in 2024

2. Cleveland Fed President Beth Hammack dissented

3. Fed median forecasts shows 2 cuts in 2025 for 50 bps

4. Fed revises end of 2025 inflation projection from 2.1% up to 2.5%

5. Fed sees unemployment at 4.3% at end of 2025.

6. One Fed official sees no rate cuts in 2025

Inflation is back. Quantitative Tightening also continues.

Source : The Kobeissi Newsletter

Bitcoin ETFs surpass gold ETFs in AUM ❗️ 

Bitcoin ETFs now surpass gold ETFs in total assets under management, reaching $129 billion compared to gold’s $128 billion.

BlackRock's iShares Bitcoin Trust leads the market, managing nearly $60 billion

In less than a year, BTC ETF’s have achieved what gold couldn’t in over two decades.

This signals a shift in demand from Gold to BTC by institutions and retail alike, a trend which we expect to continue for the foreseeble future

• Weekly on-chain insights.

• 3-5 altcoin chart setups.

• In-depth Bitcoin price updates.

• Occasional in-depth reports on altcoin gems.

• VC funding roundups.

• Market cycle insights.

• Premium Telegram trading group, and more.

🌎 Other News

• Bitcoin slips after Fed’s interest rate decision. Read more

• Jerome Powell says FED is not allowed to buy Bitcoin. Read more

• Ohio lawmaker pushes for state-backed Bitcoin reserve. Read more

• BlackRock ETF buys first muni bonds issued via blockchain. Read more

• Europol Seizes $26 Million in Crypto From 9 Drug Traffickers. Read more

📕 Educational

Some notable ALT/BTC bottoms from last cycle:

• ETHBTC - December 27th, 2020

• AAVEBTC - January 3rd, 2021

• SOLBTC - December 27th, 2020

• BNBBTC - January 8th, 2021

• AVAXBTC - December 30th, 2020.

This means that all these major winners from the last cycle started outperforming Bitcoin only in the post-halving year. We expect the same to happen going forward, this month onwards.

Overall, BTC dominance reverses trend in the post-halving year, which means accumulating altcoins now, especially in major dips is a great idea, for a holding period horizon of approximately 6 months!

📊 Stat of the day

🤣 Meme of the day

That concludes our update for today!

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Disclaimer: None of the content shared in the newsletter is financial advice. Always do your own research and analysis before investing.