New economic indicators appear to have a chilling effect on both crypto and stock markets alike, with crypto prices falling across the board early Tuesday, led by major assets such as Bitcoin, Dogecoin, and Solana. are.
Bitcoin plummeted on the day from around $101,000 to its current price of $97,856, a decline of more than 4%. Meanwhile, Ethereum and Dogecoin both fell around 7% on the day, with Solana following suit with a 6% drop.
Hot data that exceeds expectations Along with investors, U.S. job trends also appear to be playing a role. Interest rate cuts are no longer priced in from the Federal Reserve in early 2025.
Cryptocurrency liquidations have surged following the market correction, with $385 million worth of long and short positions wiped out in the past 24 hours, according to data. coin glass. Approximately $230 million worth of inflows have occurred in the past four hours alone, with long positions accounting for the majority of liquidations at $212 million.
The digital asset market has primarily benefited from low interest rates, as cryptocurrencies tend to be more volatile in price.
The U.S. central bank aggressively raised interest rates in 2022 to curb inflation in the wake of the coronavirus pandemic, making Bitcoin less attractive to investors.
But last year, Bitcoin soared along with stocks as the Federal Reserve finally moved to lower borrowing costs. US stocks also trended upward.
In December, Bitcoin hit a new all-time high of $108,135. The election of Mr. Trump as president and the approval of a spot Bitcoin ETF in the United States also played a major role in the sharp rise in virtual currency prices.
Fed Chairman Jerome Powell warned in December that the central bank would not aggressively cut rates further, saying his team would be “more cautious as we consider further adjustments to interest rates.”
editor andrew hayward
Editor's note: This article was updated with additional details after publication.
daily report meeting Newsletter
Start each day with the current top news stories, plus original features, podcasts, videos, and more.
