#Bitcoin and Ethereum prices are down.#
Hot Topic Overview
Overview
Recent declines in Bitcoin and Ethereum prices are primarily attributed to macroeconomic data that has fueled concerns about long-term inflation. Faster-than-expected US economic growth has led to a surge in bond yields, with markets anticipating the Federal Reserve to maintain higher interest rates for an extended period. Investors are unsettled by the Fed's hawkish stance on monetary policy, dampening hopes for further rate cuts and exacerbating market volatility. Additionally, the upcoming inauguration of Donald Trump is also expected to trigger market fluctuations as investors anticipate policy shifts.
Ace Hot Topic Analysis
Analysis
Recent declines in Bitcoin and Ethereum prices are primarily attributed 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, with not only cryptocurrencies but also the Nasdaq and S&P 500 indices falling by more than 1%. Faster-than-expected US economic growth has led to a surge in bond yields, with the 10-year Treasury yield reaching its highest level since April. Rachael Lucas, cryptocurrency analyst at BTC Markets, added that the latest economic data has led traders to anticipate that the Federal Reserve will maintain higher interest rates for longer. Fed Chair Powell's comments in December indicated the Fed's unwavering 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 fluctuations as investors anticipate policy shifts.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Macroeconomic concerns led to a decline in Bitcoin and Ethereum prices.
Concerns about persistent inflation have exacerbated market weakness, including cryptocurrencies.
US economic growth faster than expected has fueled concerns about persistent inflation.
Expectations of the Fed maintaining higher interest rates have exacerbated market volatility.