#Bitcoin and Ethereum prices are down.#
Hot Topic Overview
Overview
Bitcoin and Ethereum prices have recently declined, primarily driven by heightened market concerns over long-term inflation. US economic data indicating faster-than-expected growth has fueled worries about persistent inflation, leading to a surge in bond yields and subsequently impacting the cryptocurrency market. Analysts believe the Federal Reserve may maintain higher interest rates for an extended period, which will continue to pressure the market. Additionally, the upcoming inauguration of Donald Trump could also trigger market volatility as investors anticipate policy shifts.
Ace Hot Topic Analysis
Analysis
Recently, Bitcoin and Ethereum prices have fallen, primarily due to macroeconomic data that has sparked concerns about long-term inflation. Presto Research analyst Min Jung pointed out that markets, including stocks, have been weak due to concerns about persistent inflation, not just cryptocurrencies. The Nasdaq and S&P 500 both fell more than 1% yesterday. ISM data showed that the US economy grew faster than expected, fueling concerns about persistent inflation, leading to a surge in bond yields. The 10-year Treasury yield reached its highest level since April. Rachael Lucas, a cryptocurrency analyst at BTC Markets, pointed out that the latest US economic data has led traders to expect the Fed to keep interest rates higher for longer. Markets were previously unsettled by Fed Chair Powell's comments in December, which indicated the Fed's firm stance on monetary policy and dampened hopes for further rate cuts, thereby exacerbating volatility. Looking ahead, President Trump's inauguration on January 20 is expected to trigger market volatility as investors anticipate policy shifts.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Macroeconomic concerns about long-term inflation have intensified, leading to a decline in the prices of Bitcoin and Ethereum.
The US economy grew faster than expected, raising concerns about persistent inflation, leading to a surge in bond yields, which in turn impacted the cryptocurrency market.
The Federal Reserve may keep interest rates higher for longer, exacerbating market volatility.
Market expectations surrounding Trump's upcoming presidency have also fueled volatility, as investors anticipate policy shifts.