Summary:
Cardano's ADA led the losses among major cryptocurrencies, dropping 8%.
Bitcoin (BTC) fell to nearly $93,000 amid rising U.S. treasury yields.
The CoinDesk 20 (CD20) index saw a 2.87% drop in the past 24 hours.
Concerns over Trump's inauguration could trigger a sell-the-news event.
Upcoming NFP and FOMC releases are crucial for Bitcoin's price direction.
BTC, ADA Price News: Bitcoin Slumps Further as Traders Await Friday Data
On January 9, 2025, Cardano’s ADA led the losses among major cryptocurrencies as bitcoin continued its downward trend, stalling any potential rally for altcoins. Bitcoin (BTC) fell to nearly $93,000 on Wednesday, driven by recent economic data that caused U.S. treasury yields to surge, leading to declines in equities. The latest Institute for Supply Management (ISM) report revealed stronger-than-expected performance from U.S. service providers, pushing the prices-paid measure to its highest since early 2023.
This downturn affected other major tokens, with ADA, SOL, BNB, and ETH all down nearly 10% since Monday. The CoinDesk 20 (CD20) index tracking large tokens saw a decrease of 2.87% in just the last 24 hours, following a 7% plunge on Wednesday.
In the broader market, options on the S&P 500 now indicate greater downside risks compared to a year ago, which may further suppress the chances of recovery for risk assets like bitcoin, as traders gravitate towards safer investments such as bonds.
Concerns surrounding President-elect Donald Trump's inauguration on January 20 could trigger a “sell-the-news” event, according to CoinDesk’s Omkar Godbole. However, risk-taking has increased over the past two months with expectations of pro-business reforms under Trump's presidency, leading to potential profit-taking.
Trump's inauguration is anticipated to influence crypto regulations and may introduce a strategic bitcoin reserve in the following months, setting the stage for a potential rally. QCP Capital in Singapore urges traders to keep an eye on upcoming U.S. economic data for further positioning.
They stated, “All eyes are on this week's FOMC and NFP releases, which are expected to influence Bitcoin's price trajectory. We believe Bitcoin's pullback is merely a pause, setting the stage for a bullish rally as Trump's inauguration fuels optimism.”
The NFP report, which reflects job creation in the U.S. excluding farm jobs, serves as an indicator of economic health. Strong NFP numbers could signal potential interest rate hikes, which are typically detrimental to risk assets like bitcoin, while weak figures suggest lower rates, benefiting such assets.
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