The four-week moving average of initial jobless claims in the United States dropped to 216,750 in December, down from 217,500. This change indicates shifts in the labor market. Gold prices have fallen from their record highs, now trading below $4,500. This change comes as trading slows down before the Christmas holiday, while the US dollar faces selling pressure due to softer Federal Reserve expectations.

Bitcoin Price Trends

Bitcoin’s price has decreased below $87,000, currently at around $86,770. Outflows from US-listed spot ETFs reached $188.64 million, showing a pattern of increased withdrawals over the last four days. Avalanche is trading near $12, following a nearly 2% drop from the previous day. Grayscale has submitted an updated application to the US Securities and Exchange Commission to turn its Avalanche Trust into an ETF. The economic outlook for advanced countries in 2026-2027 looks positive, indicating continued economic growth. Most of the supportive factors from 2025 are expected to carry over into 2026, helping create a favorable economic environment.

US Labor Market Strength

The U.S. labor market remains strong, with the four-week average for initial jobless claims dropping to 216,750. This reflects the resilience seen in 2024 and 2025 when the unemployment rate stayed below 4%. This solid economic foundation may challenge expectations for aggressive interest rate cuts by the Federal Reserve in early 2026. Gold’s decline from its all-time high of over $4,500 is significant. This drop suggests that while inflation over the last two years has supported gold prices, the metal is now sensitive to changes in interest rate forecasts. Considering options strategies that prepare for either consolidation or further declines in gold prices might be wise as we enter the new year. The positive forecast for the S&P 500 in 2026 appears to be backed by this strong economic data. The market’s recovery from its 2024 highs was supported by unexpectedly solid corporate earnings. This favorable environment supports strategies that benefit from market stability or gradual growth, especially as trading volumes increase after the holiday season. Bitcoin’s decline below $87,000, driven by four days of ETF outflows, highlights the liquidity risks during the holiday season. We should remember the large ETF inflows of 2024, which boosted its price and underscore the asset’s sensitivity to institutional fund movements. Consequently, we need to be ready for potential spikes in volatility across all asset classes when full market activity resumes in January. Create your live VT Markets account and start trading now.

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