This week is destined to be recorded in the history of the financial markets. From London to Frankfurt to Washington, decisions from the three major central banks and economic data are hitting the market like a barrage. Tonight, the Bank of England, the European Central Bank, and US inflation data will be released in sequence. This is not only the final battle of the year but also a key moment to set the tone for 2026.

For the cryptocurrency market, this synchronized shift in global central bank policies often means significant volatility. Why? Because capital flows always follow policy expectations, and policy expectations determine the outlook for risk assets.

First, look at the UK. Data shows that the UK economy is slowing down, and although inflation has retreated, it remains sticky. The market generally predicts that the Bank of England will choose to cut interest rates to stimulate the economy by releasing liquidity. Once the pound weakens, the US dollar tends to strengthen, and risk assets like Bitcoin, which are dollar-denominated, may face short-term pressure. Capital prefers to flow into strong currencies, an unchanging rule.

The situation in Europe is more complex. Although the Eurozone economy shows some resilience, inflation data remains high. The European Central Bank may choose to hold steady, and some analysts are even discussing the possibility of rate hikes next year. What does this mean? The ECB and other central banks might start to move in opposite directions, shattering the market’s illusion of global liquidity easing.

Most critically, the US. The November CPI data will fill the gap left by October, effectively revealing two months’ worth of price changes. The market expects overall inflation to stay around 3.1%, which is significantly above the Federal Reserve’s 2% target. If the data confirms this, market expectations for the Fed to continue cutting rates next year will be dashed. The longer interest rates stay high, the lower investors’ risk appetite becomes, and small altcoins chasing highs will be the first to get hammered.

From this perspective, tonight’s three data releases are like opening three switches. UK easing, European resilience, US sticky inflation—when combined, these signals could lead global capital markets to realign. As risk assets, cryptocurrencies will amplify these changes.

So, what should be done in practical trading? Honestly, tonight is not the time to heavily bet on the direction. When multiple central banks act in concert, volatility can cause quick liquidations for those chasing high. Core holdings like Bitcoin and Ethereum should be held steady, but don’t panic sell due to short-term fluctuations. Observing the market’s real reaction to these news events is often more important than trying to predict in advance.

Also, keep a close eye on the US dollar index. It is the compass for global capital. Once the dollar index breaks upward, the crypto market will likely follow suit. This isn’t some mysterious rule; it’s basic capital flow logic.

After tonight’s big event, the general direction for 2026 will start to take shape. That will be the real test of insight—not just guessing the right direction, but aligning with the rhythm as capital repositions. This is the biggest challenge and the greatest opportunity the market offers.