Presto Research analyst Min Jung stated, "Due to macroeconomic concerns about persistent inflation, the markets, including stocks, have been performing poorly. Not only cryptocurrencies, but the Nasdaq and S&P 500 indices also fell by more than 1% yesterday, primarily due to ISM data showing that U.S. economic growth exceeded expectations, raising concerns about ongoing inflation, which led to a surge in bond yields, with the 10-year Treasury yield reaching its highest level since April."
Rachael Lucas, a cryptocurrency analyst at BTC Markets, pointed out, "The latest data on the U.S. economy has led traders to expect that the Federal Reserve will maintain higher interest rates for a longer period. The market was previously unsettled by comments made by Federal Reserve Chairman Powell in December, which indicated a firm stance on monetary policy and diminished hopes for further rate cuts, thus increasing volatility. Looking ahead, Trump's inauguration scheduled for January 20 is expected to trigger market fluctuations as investors anticipate a shift in policy." (The Block)