#Bitcoin and Ethereum prices are down.#
Hot Topic Overview
Overview
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, with the Nasdaq and S&P 500 both falling over 1%. The latest economic data from the US has led traders to expect the Federal Reserve to keep interest rates higher for longer, exacerbating market volatility. Investors are anticipating market volatility ahead of Trump's inauguration on January 20th, as they are expecting a shift in policy.
Ace Hot Topic Analysis
Analysis
The recent decline in Bitcoin and Ethereum prices is primarily attributed to macroeconomic data that has sparked concerns about long-term inflation. Min Jung, an analyst at Presto Research, pointed out that markets, including stocks, have been weak due to persistent inflation concerns. Faster-than-expected US economic growth has led to a surge in bond yields, fueling concerns about sustained inflation, which in turn has caused the Nasdaq and S&P 500 to decline. Rachael Lucas, a cryptocurrency analyst at BTC Markets, added that the latest US economic data has led traders to anticipate that the Federal Reserve will maintain higher interest rates for a longer period. Fed Chair Powell's previous comments in December, indicating the Fed's unwavering stance on monetary policy, have dampened hopes for further rate cuts, exacerbating market 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 exacerbated market weakness, including stocks and cryptocurrencies.
US economic data suggests the Fed will maintain high interest rates, intensifying market volatility.
Investor sentiment towards the Fed's policy stance and expectations for Trump's inauguration also influenced market volatility.