Analyst: Cryptocurrencies fall as macroeconomic data raises concerns about long-term inflation

Min Jung, an analyst at Presto Research, said, "Markets, including stocks, have been weak due to macroeconomic concerns about continued inflation. Not only cryptocurrencies, but the Nasdaq and S&P 500 both fell more than 1% yesterday, mainly due to ISM data showing faster-than-expected U.S. economic growth, which raised concerns about continued inflation, causing bond yields to soar, with the 10-year Treasury yield reaching its highest level since April." Rachael Lucas, a cryptocurrency analyst at BTC Markets, pointed out that "the latest data on the U.S. economy has led traders to expect the Federal Reserve to maintain higher interest rates for a longer period of time. The market was previously uneasy about Fed Chairman Powell's remarks in December, which indicated the Fed's firm stance on monetary policy and weakened market hopes for further rate cuts, thereby exacerbating volatility. Looking ahead, Trump's upcoming inauguration on January 20 is expected to trigger market volatility as investors are anticipating a shift in policy." (The Block)