On the eve of the Thanksgiving holiday, US stocks closed down, while ETH surged by 10%. Is it the right time for cryptocurrencies to perform?

The three major US stock indexes closed in the red before the Thanksgiving holiday. The PCE data released yesterday showed a slight rise in inflation, but the economy remained stable. Investors expect the Fed to maintain a gradual interest rate cut pattern. Ethercoin saw a big pump of over 10%, BTC rose more than 4%, and the top ten Market Cap Cryptocurrencies all performed well yesterday.

The US economy remains robust, with a slight rise in inflation

Revised data shows that the US GDP grew by 2.8% in the third quarter, the same as the initial value, indicating that the economy maintained robust growth momentum at the beginning of the fourth quarter.

The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index (PCE), rose 0.2% in October on a monthly basis and 2.3% on an annual basis, compared to the previous month’s 2.1% rise.

Although durable goods orders in October increased less than expected, the number of initial jobless claims was 213,000, slightly lower than the upwardly revised 215,000 last week, indicating a stable labor market.

Spartan Capital Chief Market Economist Peter Cardillo said:

“We all expect inflation to rise slightly, but it’s not out of control. That’s the key. This paves the way for a 25 basis point cut in December, and then maybe a pause. But the pause is unlikely to be due to inflation data, but because of the uncertainty of Trump’s tariffs. I think the Fed will become cautious.”

ETH is surging, reaching a high of $3,684

Ethercoin has recently shown a strong rise, rising from 3,252 to as high as 3,684 US dollars this morning, with a rise of over 10% in the past 24 hours. Wintermute analysts stated that capital flows are shifting from Bitcoin to Ether, and derivative market activities indicate increasing confidence in the recent rise of ETH.

However, compared to Bitcoin, which has set multiple historical highs this month, the rise of Ethercoin still lags behind. Ethercoin needs to pump another 35% to reach its historical high of $4,868 in 2021!

Trading is light during the Thanksgiving holiday, and the market Fluctuation is expected to intensify

This Thursday, the US stock market will be closed for Thanksgiving holiday, and will close early on Friday. It is expected that the volume may be lighter this week, but under the condition of shrinking volume, it is also possible to increase market volatility. Investors should be aware of trading risks.

This article is grateful for the blackening of the US stock market on the eve of the holiday, with ETH soaring 10%. Is it time for cryptocurrency to perform? Originally appeared on ChainNews ABMedia.