As we saw today and yesterday, altcoins and meme coins have fallen significantly as well as risen significantly, and the reason behind this decline is that earlier this week, Bitcoin and Ether surged on the back of increased market optimism about Donald Trump’s upcoming presidential inauguration, as evidenced by rising perpetual futures funding rates, according to analysts. However, Min Jung, an analyst at Presto Research, told The Block that broader markets, including stocks, are seen to be faltering amid macroeconomic concerns about sustained inflation.
Due to inflation data, Nasdaq and SEP also fell 1%, this data also shows that the upcoming FOMC meeting will keep the interest rate as before due to high inflation, this news is not good for the crypto market in general. On January 20, Trump was inaugurated in the White House and the crypto market made a new all-time high, but before this bad news, the interest rate was as before, this is why we have a strong bloody market, many long trades online if Bitcoin reaches the area near 90k.
CME Group's FedWatch tool currently indicates a 95% chance that the Federal Reserve will keep the U.S. interest rate between 4.25% and 4.5% at its next interest rate decision on January 29.
Looking ahead, Donald Trump’s upcoming inauguration on January 20 is expected to cause market volatility as investors anticipate policy changes, according to Lucas. “With a pro-crypto majority in Congress and key appointments like Scott Bessent as Treasury Secretary and Elon Musk as an advisor, the administration is signaling a major shift toward crypto,” Lucas said.
Investors are also awaiting key economic events later this month, including the release of FOMC minutes and nonfarm payrolls data later this week, as well as the release of CPI data on January 15, which will help them assess risks related to monetary policy and inflation.
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