📊🔻 Crypto and Tech Stocks Plunge as Strong Economy Dims Rate Cut Expectations 🔻📊
On January 7, 2025, both crypto and traditional markets fell due to strong economic data suggesting a potential delay in Federal Reserve rate cuts.
Bitcoin ($BTC ) plummeted to $96,909, experiencing a more than 5% drop within 24 hours.
The market correction resulted in the liquidation of over $483.44 million in long positions in one day. Ethereum ($ETH ) and Solana ($SOL ) also saw significant declines of over 8% and 7%, respectively.
The market was influenced by economic reports, notably the ISM's PMI for December which rose to 54.1 from 52.1 in November.
The JOLTS report indicated more job openings than expected but lower hiring and a drop in the quit rate from 2.1% to 1.9%, signaling less worker confidence. These indicators led investors to adjust their expectations for Federal Reserve rate cuts, now seeing less than a 50% chance before June, with the Fed likely to keep rates steady in January.
The stock market mirrored these economic concerns; the S&P 500 decreased by 1.1%, the Nasdaq by 1.9%, with Nvidia's stock dropping 6.2% despite new AI announcements at CES.
Is this market correction a buying opportunity?
📍Disclaimer: This is not a financial recommendation, cryptocurrency investments are speculative, and past performance does not guarantee future results. Always conduct your own research and consider your risk tolerance.
Thank you for reading.