US market balances between optimism and bubble fears

The American stock market continues to grapple with uncertainty, swinging between growth expectations and concerns of a market correction. Bulls are betting on the traditional Christmas rally, which historically supports stock prices at the year's end. The decline in inflation, anticipated easing of the Federal Reserve's monetary policy, and strong corporate earnings create a favorable backdrop for the continued growth of the S&P 500 and other key indices.

However, bears warn of increasing risks, particularly in the technology sector, where company valuations appear increasingly inflated. Analysts at Goldman Sachs believe that the rally in US stocks could continue until 2026 but caution that profit growth may slow as early as next year. This raises concerns about increased volatility and a more selective approach from investors regarding asset allocation. Follow the link for more details.

Bitcoin under pressure, at risk of further decline

Bitcoin continues to trade amid heightened uncertainty, showing weak momentum due to profit-taking and capital outflows from investment funds. There is a risk that the price could fall below the $85,000 level, which could trigger a chain reaction of sell-offs and increase pressure from short-term investors. A further factor contributing to this instability is a decline in interest from institutional market participants.

At the same time, long-term inflation expectations still support interest in cryptocurrency as a safe-haven asset. Temporary support for Bitcoin is provided by the growth in the US stock market, particularly the S&P 500 index. From a technical analysis standpoint, BTC/USD remains within a limited trading range of $85,000 to $94,000, indicating a phase of consolidation before a potential impulsive move. Follow the link for more details.

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