US major indices closed lower ahead of the Thanksgiving holiday. Yesterday’s released PCE data showed a slight increase in inflation, but the economy remained robust, and investors expect the Fed to maintain a gradual rate cut pace. Ethereum surged more than 10%, Bitcoin rose about 4%, and the top ten cryptocurrencies by market capitalization all performed well yesterday.

US Economy Remains Robust, Inflation Rises Slightly

Revised data showed that US GDP grew 2.8% in the third quarter, unchanged from the initial reading, indicating that the economy maintained robust growth momentum at the beginning of the fourth quarter.

The Fed’s preferred inflation indicator, the Personal Consumption Expenditures Price Index (PCE), rose 0.2% in October on a monthly basis and 2.3% on a year-over-year basis, up from 2.1% the previous month.

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

ETH Soars, Reaching a High of $3,684

Ethereum has been on a strong upward trend recently, rising from $3,252 to a high of $3,685 this morning, representing a 24-hour increase of more than 10%. Capital is flowing from Bitcoin to Ethereum, and derivatives market activity indicates growing confidence in ETH’s recent rally.

However, compared to Bitcoin, which has set new historical highs multiple times this month, Ethereum’s rally is still relatively lagging behind. Ethereum is still 35% away from its all-time high of $4,868 in 2021.

Market Volatility May Intensify During Thanksgiving

US stocks will be closed on Thursday for Thanksgiving, and will close early on Friday. Trading volume is expected to be relatively light this week, but the reduced scale may also intensify market volatility, and investors should be aware of trading risks.

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