The crypto market has been quite active this week. Starting Monday, the National Association of Realtors disclosed a set of data—pending home sales in November increased by 3.3% month-over-month and 3.6% year-over-year. It seems that economic activity is improving, which should be positive for risk assets, but the actual trend has shown some divergence.

After the data release, the US dollar index strengthened, and cryptocurrencies followed with a correction. According to real-time data from CoinMarketCap, the total market capitalization of cryptocurrencies dropped by 1% within 24 hours, currently consolidating around $29.7 trillion. Many people are scratching their heads at this trend.

By Tuesday, the FOMC meeting minutes from the Federal Reserve are about to be released. This record will explain in detail why the decision was made to cut the interest rate to the 3.5%-3.75% range, which will significantly impact future policy expectations.

On Wednesday (December 31), the unemployment benefit claims data will be released. It is expected to rise from 214,000 last month to 215,000. The increase doesn't seem large, but although this type of data is a lagging indicator, it has a profound influence on the Fed’s subsequent decisions. How the Fed moves will directly affect the volatility of the crypto market. Therefore, this week’s policy-related information is quite dense, and close attention is needed.