#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 inflation worries, leading to a surge in bond yields and subsequently impacting the cryptocurrency market. Analysts point out that the Federal Reserve may maintain higher interest rates for an extended period, which will continue to exacerbate market volatility. Additionally, the upcoming inauguration of Donald Trump could also trigger market fluctuations as investors anticipate policy shifts.
Ace Hot Topic Analysis
Analysis
The recent decline in Bitcoin and Ethereum prices is primarily attributed to macroeconomic data that has fueled concerns about long-term inflation. Min Jung, an analyst at Presto Research, points out that markets, including stocks, have been weak due to concerns about persistent inflation. Not only cryptocurrencies, but also the Nasdaq and S&P 500 indices have fallen by over 1%. ISM data revealed that the US economy grew faster than expected, intensifying 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, notes that the latest US economic data has led traders to anticipate that the Federal Reserve will maintain higher interest rates for a longer period. The market was previously unsettled by Federal Reserve Chair Jerome Powell's remarks in December, which 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 about long-term inflation have intensified, leading to declines in Bitcoin and Ethereum prices.
US economic growth has exceeded expectations, fueling concerns about persistent inflation, leading to a surge in bond yields, which in turn has impacted the cryptocurrency market.
The Federal Reserve is expected to maintain higher interest rates for longer, exacerbating market volatility.
President Trump's upcoming inauguration is expected to trigger market volatility as investors anticipate policy shifts.