#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, continuing to exert pressure on 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 performing poorly due to concerns about persistent inflation. Faster-than-expected US economic growth has led to a surge in bond yields, fueling concerns about sustained inflation. Rachael Lucas, cryptocurrency analyst at BTC Markets, added that the latest US economic data has led traders to expect the Federal Reserve to keep interest rates higher for longer. Federal Reserve Chair Jerome Powell's comments in December indicated the Fed's unwavering stance on monetary policy, dampening hopes for further rate cuts and exacerbating market 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 declines in Bitcoin and Ethereum prices.
The US economy grew faster than expected, fueling concerns about persistent inflation, leading to a surge in bond yields, which in turn impacted the cryptocurrency market.
Expectations of the Fed maintaining higher interest rates have exacerbated market volatility.
Trump's upcoming inauguration is expected to trigger market volatility as investors anticipate policy shifts.