Key Insights:
- Cardano's ADA leads the decline among major cryptocurrencies, following Bitcoin's downward trend without signs of recovery.
- Traders are focusing on upcoming U.S. economic indicators, especially the FOMC and NFP reports, that may further influence Bitcoin's price movements.
Article Content:
Cardano's ADA fell sharply among the prominent cryptocurrencies as Bitcoin showed persistent weakening, stalling any chances of a spike in altcoin values.
Bitcoin (BTC) recently dipped to approximately $93,000 on Wednesday, following the release of new economic data that pushed U.S. treasury yields higher, which in turn caused a decline in stock prices. The latest report from the Institute for Supply Management (ISM) regarding U.S. services showed unexpected strength, notably with the prices-paid metric hitting its highest level since early 2023.
This unfavorable trend dragged down other significant tokens. Apart from ADA, Solana's SOL, BNB Chain (BNB) and Ethereum (ETH) have also seen nearly a 10% decline since Monday.
The CoinDesk 20 index, which tracks the performance of major cryptocurrencies, recorded a 2.87% decrease over the preceding 24 hours, adding to a decline of 7% witnessed the day before.
Currently, there is heightened concern among investors regarding President-elect Donald Trump's inauguration scheduled for January 20, leading to thoughts that this could trigger a 'sell-the-news' moment. Observers are watching the anticipation of pro-business reforms expected during his presidency, which could lead to profit-taking in the following months.
Industry analysts at QCP Capital suggest that forthcoming U.S. economic releases will be critical as traders position themselves accordingly. They anticipate that this week's FOMC and NFP releases may significantly affect Bitcoin price trends, stating, "We believe Bitcoin's recent pullback is merely a pause, setting the stage for a potential rally in response to Trump's inauguration."
The NFP report, providing data on job growth or loss in the U.S. (excluding agricultural jobs), will be crucial in understanding the economic health and influencing future interest rate decisions that directly relate to risk assets such as cryptocurrencies.
