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Cardano’s ADA Drops 8% as Traders Await Trump Catalyst for Bitcoin Gains
BTC and ADA Price News: Bitcoin Drops Further as Traders Await Friday Data
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Cardano’s ADA led losses among major cryptocurrencies as Bitcoin weakened, with no immediate signs of recovery.
Attention is now focused on upcoming US economic data, especially FOMC and NFP reports, which could further influence Bitcoin price action.
Cardano’s ADA led losses among major cryptocurrencies on Thursday as Bitcoin’s weakness showed no signs of stopping, putting a damper on any chances of altcoins rallying.
Bitcoin (BTC) fell to near $93,000 on Wednesday as fresh economic data sent U.S. Treasury yields higher, sending stocks lower. The Institute for Supply Management’s (ISM) latest report on U.S. service providers was stronger than expected, with a measure of prices paid hitting its highest point since early 2023.
This has led to other major coins falling. Token prices have been flat over the past week as traders took profits from a short-lived rally earlier in the week, with ADA, Solana’s SOL, BNB Chain (BNB) and Ether (ETH) all down around 10% since Monday.
The broader CoinDesk 20 Index (CD20), a liquid index tracking the largest tokens, is down 2.87% in the past 24 hours, a further decline after a 7% drop on Wednesday.
Meanwhile, options on the broad-based S&P 500 now reflect greater downside risk than they did a year ago — which could dampen the chances of a rally in riskier assets, including bitcoin, as traders favor safer investments like bonds.
The defensiveness in stocks may stem from concerns that President-elect Donald Trump’s inauguration on January 20 could be a “news sell-off,” according to CoinDesk’s Omkar Godbole . Risk has been building momentum in financial markets over the past two months in anticipation of pro-business and pro-economic reforms under Donald Trump’s incoming presidency, and profit-taking cannot be ruled out.
Trump’s inauguration on January 20 is widely expected to lead to a shift in crypto regulations and even Bitcoin’s strategic reserve in the coming months, two months that provide support for the next rally.
That's the view echoed by Singapore-based QCP Capital, which says traders should watch fresh U.S. economic data on Friday before taking further positions.
“All eyes are on the FOMC releases and NFP data this week, which are expected to further influence the Bitcoin price trajectory,” QCP Bank said in a live market broadcast on Telegram on Thursday. “With market expectations growing, we believe that Bitcoin’s pullback is just a temporary pause, paving the way for a bullish rally as Trump’s inauguration fuels optimism.”
The Non-Farm Payrolls report is a monthly report that provides insights into the creation or loss of jobs in the United States, excluding agricultural jobs, reflecting the health of the economy. Strong non-farm payrolls numbers indicate a strong economy, which suggests a potential rise in interest rates, which tends to be bad for risky assets like Bitcoin. Weak non-farm payrolls numbers indicate that prices will remain low or fall, which benefits risky assets.
