Market Focus on Fed Policy and Sector Rotation, U.S. Stocks Sprint Toward Record Highs

2025-12-28 by admin

BlockBeats news, December 28, U.S. stocks are currently at historical highs, with the S&P 500 index only about 1% away from breaking 7,000 points for the first time, poised to achieve its eighth consecutive monthly gain, which would be the longest monthly winning streak since 2017-2018. “Momentum is clearly on the side of the bulls,” said Paul Nolte, senior wealth advisor at Murphy & Sylvest Wealth Management. “Unless there is an external shock event, I believe the path of least resistance for the stock market remains upward.” The Federal Reserve meeting minutes will become a market focus next week, with investors highly attentive to when the Fed might further cut interest rates.

Investors are also awaiting Trump’s nomination of a new Federal Reserve chair to replace Powell, and any hints from Trump could influence market trends next week. The S&P 500 index has risen nearly 18% year-to-date, while the Nasdaq index has gained 22%. However, the technology sector, a major driver of this bull market, has recently struggled, while other areas of the market have performed strongly. Anthony Saglimbene, chief market strategist at Ameriprise Financial, stated that these market movements indicate funds are rotating into areas with more moderate valuations. (Jin10)

BlockBeats News, December 29 – According to a report by Cointelegraph, a proposal in California to impose a 5% tax on billionaires' wealth has faced strong opposition from cryptocurrency executives. They argue that it would trigger an exodus of entrepreneurs, capital flight, and ultimately be wasted regardless.The proposal, named the '2026 Billionaire Tax Act,' aims to introduce a ballot measure that would levy a 5% tax on individuals or entities with a net worth exceeding $1 billion to fund healthcare systems and state assistance programs. According to SEIU United Healthcare Workers West, because this proposed wealth tax partially targets unrealized gains, some billionaires may need to sell stocks or parts of their businesses to raise funds for tax payments. The tax can be paid in a lump sum or spread over five years with interest.Industry veterans in the cryptocurrency sector, including Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell, believe that this measure would only lead to billionaires leaving the state, resulting in negative consequences.

BlockBeats news, December 29, according to HyperInsight monitoring, as ZEC price has been continuously rising since the 27th (cumulative increase of approximately 22%), the open interest (OI) of ZEC on the Hyperliquid platform has significantly increased, with the largest long and short positions on-chain both simultaneously increasing their bets.The "largest ZEC short" address has recently continued to add to its short positions, with the position size rebounding to $19.84 million, at an average price of $417, currently with an unrealized loss of approximately $4.51 million (-113%). Since opening short positions on ZEC in October, this address has been frequently active, having reduced its short position size from $16.5 million to $9.1 million on December 17, and now adding to it again. Currently, its total short position size has increased from $113 million to $163 million, making it the largest short position holder for ETH, ZEC, and MON on the platform.At the same time, a certain whale (0x6b2) significantly increased its 3x leveraged long position yesterday at an average price of $520. The current ZEC long position size has reached $32.2 million, with an average price of $431, and an unrealized profit of approximately $6.53 million (60%), making it the largest long position holder for ZEC on-chain.