Home Fear & Greed Pools Wallets Dictionary Advertise Facebook Twitter Telegram Reddit Youtube
Market Cap:
24h Vol:
Cryptocurrencies: 12450
Markets: 96130
CoinInsight360.com logo CoinInsight360.com logo
ENG
EST
RUS
TUR
DEU
CHI
KOR
ITA
USD
USD
AED
AFN
ALL
AMD
ANG
AOA
ARS
AUD
AWG
AZN
BAM
BBD
BDT
BGN
BHD
BIF
BMD
BND
BOB
BRL
BTN
BWP
BYN
BZD
CAD
CDF
CHF
CLF
CLP
CNH
CNY
COP
CRC
CUC
CUP
CVE
CZK
DJF
DKK
DOP
DZD
EGP
ERN
ETB
EUR
FJD
FKP
GBP
GEL
GHS
GIP
GMD
GNF
GTQ
GYD
HKD
HNL
HRK
HTG
HUF
IDR
ILS
IMP
INR
ISK
JMD
JOD
JPY
KES
KGS
KHR
KMF
KPW
KRW
KWD
KYD
KZT
LAK
LBP
LKR
LRD
LSL
LYD
MAD
MDL
MGA
MKD
MMK
MNT
MOP
MRU
MUR
MVR
MWK
MXN
MYR
MZN
NAD
NGN
NIO
NOK
NPR
NZD
OMR
PAB
PEN
PGK
PHP
PKR
PLN
PYG
QAR
RON
RSD
RUB
RWF
SAR
SBD
SCR
SDG
SEK
SGD
SHP
SLL
SRD
SSP
STD
STN
SVC
SYP
SZL
THB
TJS
TMT
TND
TOP
TRY
TTD
TWD
TZS
UAH
UGX
UYU
UZS
VES
VND
VUV
WST
ZAR
ZMW
ZWL
A company that is changing the way the world mines bitcoin

WallStreet Forex Robot 3.0
Market Cap
24h Vol
12450
Cryptocurrencies
55.82%
Bitcoin Share
BitcoinSistemi 2025-01-08 17:04:09

Why Are Bitcoin and Altcoins Falling? Here Are All the Reasons in Depth!

Why Are Bitcoin and Altcoins Falling? Here Are All the Reasons in Depth!

The world's largest cryptocurrency, Bitcoin, has dropped below $95,000, extending its decline as the overall crypto markets face sharp losses. At the time of writing, Bitcoin is trading at $94,771, with many altcoins down 20-30%. The market turmoil comes after unexpectedly strong economic data from the US, which has raised concerns about a prolonged period of high interest rates. The decline was triggered by the release of strong U.S. labor and economic confidence indicators, including: JOLTS Job Postings: 8.1 million (over 7.7 million expected). Services PMI: 54.1 (better than expected 53.3). ISM Service Prices: 64.4 (well above expectations of 57.5). While positive economic data usually bodes well for traditional markets, it often has the opposite effect on riskier assets like Bitcoin and altcoins. A strong labor market and rising confidence in economic activity suggest the Fed may delay rate cuts, a scenario that has dampened interest in cryptocurrencies. Related News: US Treasury Secretary Janet Yellen Speaks on the US Economy and Interest Rates The crypto market was positioned for weaker economic data that could have supported a more dovish Fed stance. Instead, unexpected strength in the labor market has given the Fed “two reasons to maintain high interest rates,” as analysts put it: Resilient Labor Market: Higher income levels increase consumer spending, potentially fueling inflation. Service Sector Prices: The sharp increase in service prices is reinforcing inflationary pressures. With inflation remaining a concern, markets are expecting fewer rate cuts in 2024. As a result, yields on long-term U.S. Treasury bonds have risen, a development that has often pressured Bitcoin given its sensitivity to tighter monetary policy. Adding to the pressure, retail interest in cryptocurrencies has also waned. Google search trends show a sharp decline in interest in Bitcoin and altcoins since their December highs. Retail investment volume, a key driver of previous bull markets, has also declined significantly in recent weeks, with purchases below $10,000 falling. Bitcoin’s failure to hold above $100,000 triggered additional selling pressure, with long-term holders dumping significant amounts of Bitcoin at these levels, reminiscent of the $70,000 sell-off in March 2024. The US Dollar Index (DXY) continues its strong run, adding pressure on Bitcoin. A strong dollar reduces the appeal of riskier assets like cryptocurrencies. However, some analysts predict a potential decline in the dollar’s strength in the coming months, which could provide relief for Bitcoin and altcoins. While it is not uncommon for institutional investors to sell at year-end for profit, several key events in January can impact market volatility: Today: FOMC meeting minutes. Friday: US nonfarm payrolls report. January 15: US inflation data for 2024. January 24: Bank of Japan interest rate decision. January 29: FED interest rate decision. *This is not investment advice. Continue Reading: Why Are Bitcoin and Altcoins Falling? Here Are All the Reasons in Depth!

Most Read News



Cryptohopper
hardware wallets, hardware , wallets, Crypto Currency, Cryptocurrency hardware wallets, Crypto Apparal, crypto wallet, Cryptocurrency wallets

Market Cap
24h Vol
55.82%
Bitcoin Share
643
Today News
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.