Web3 Market Update: Rising Inflation Triggers Market Fluctuation, Crypto Assets Experience Severe Ups and Downs

1. Market Highlights

1. Macroeconomic Environment

The U.S. producer price index for November ( PPI ) data exceeded expectations, rising 0.4% month-on-month and 3% year-on-year, reaching a recent high. This data reflects a warming of inflation, raising concerns in the market about the future direction of the Federal Reserve's policy. Although the market generally expects the Federal Reserve to cut interest rates at next week's meeting, the PPI data has added uncertainty to the prospects of rate cuts next year.

As a result, the three major U.S. stock indices fell collectively. The Dow Jones Industrial Average declined for six consecutive days, closing down 0.53%; the S&P 500 dropped 0.54%; the Nasdaq Composite fell 0.66%. Large tech stocks performed poorly, with Nvidia and Tesla down 1.41% and 1.57%, respectively.

2. Crypto Assets Market

The crypto market has experienced significant fluctuations. Trump made a statement on the New York Stock Exchange, claiming that he would achieve major goals in the Crypto Assets sector, which briefly pushed the price of Bitcoin above $102,000. However, influenced by the decline in U.S. stocks and PPI data, Bitcoin quickly fell back below $100,000, leading to a general decline in the entire crypto market.

It is worth noting that the decentralized finance ( DeFi ) sector has performed strongly. World Liberty Financial ( WLFI ) has purchased a large amount of Ethereum, AAVE, and Chainlink, currently holding approximately 74.9 million USD in Crypto Assets, with Ethereum being the largest holding. This is seen as a positive outlook on Ethereum's potential, possibly an early layout of its encryption strategy.

2. Hot Events

1. The Trump team is considering restructuring financial regulatory agencies.

According to reports, Trump's team is exploring the possibility of eliminating or merging financial regulatory agencies. They inquired about issues related to abolishing the Federal Deposit Insurance Corporation (FDIC) and interviewed potential candidates for the FDIC and the Office of the Comptroller of the Currency (OCC). The Trump team proposed plans to merge or completely reform the FDIC, OCC, and the Federal Reserve, aiming to improve the efficiency of government regulation.

2. Chill Guy's image遭黑客攻击引发争议

The artist Phillip Banks, who created the Chill Guy character, encountered a social media account hacking incident. The hacker posted some radical statements, causing the CHILLGUY price to briefly drop by 15%. Banks later clarified, emphasizing that the Chill Guy character and rights will never involve encryption, and stated that legal action will be taken. The community suspects that this incident may be a planned "wash trading" operation.

3. Hot Narrative

Travala's annual revenue exceeds 100 million USD, and the price of AVA coin surges.

The travel agency Travala, which supports Crypto Assets payment, announced that its annual revenue has surpassed 100 million USD and launched a funding reserve strategy for its native token AVA and Bitcoin. This news has attracted attention and shares from notable figures in the Crypto Assets community, driving the price of AVA coin to soar by 342% in a short period, reaching a nearly two-year high.

Travala, as an online travel agency, offers flight, accommodation, and activity booking services, accepting payments in over 100 types of Crypto Assets and fiat currencies. The platform combines blockchain technology to enhance users' travel booking experience.

4. Sector Rotation

According to the latest data, the performance of various sectors in the encryption market is mixed. The DeFi and AI sectors remain strong, while the NFT and Meme sectors are relatively weak. Investors need to closely monitor market trends and allocate assets wisely.