As reported by CriptoTendencia in a previous publication, the price of cryptocurrencies is facing a strong decline led by Bitcoin, which is down 5.30%, Ethereum is down 8%, and Ripple is down 6.39%.

Cryptocurrency-related stocks also showed a significant decline. For example, Coin's stock fell by 8.36% and MicroStrategy dropped by 11.32%.

The altcoin market is experiencing a massive price drop, with most of them declining, and as we reported in the cited note, it seems that the publication of important U.S. economic data is responsible, especially the JOLTS. The effect of the rising yield of 10-year Treasury bonds was also mentioned.

The ghost of inflation reappears with the JOLTS

However, in this article, we will delve into a danger that resurfaced in December when the Fed talked about the possibility of cutting interest rates only twice in 2025.

Apparently, the underlying fear of the return of inflation and a tightening of Fed policies is responsible for the current decline. At the same time, it is catalyzed by data such as the increase in Treasury bond yields, especially the rise of the JOLTS.

Will Bitcoin change the course of cryptocurrencies upward?

It is worth noting that, in general, inflation data for the month of January tends not to be positive due to increased consumption in December. So there remains hope, among a segment of analysts, that January's inflation may change to continue its downward trend and the Fed can proceed with the reduction of interest rates (initiated in 2024), which would be bullish for cryptocurrencies.

It is also worth mentioning that there is hope that Bitcoin will continue to drive the crypto market upward due to Donald Trump's possession on January 20. However, for now, Bitcoin has not been able to establish itself at the key level of 100,000 USD, even rising to 102.7k.