Analyst: Concerns over long-term inflation sparked by macroeconomic data led to a drop in Bitcoin and Ethereum prices

BlockBeats News, January 8th, according to The Block, Presto Research analyst Min Jung stated, "Due to macroeconomic concerns about ongoing inflation, markets including stocks have shown weakness. Yesterday, not only cryptocurrencies, but also the Nasdaq and S&P 500 indices all fell by more than 1%, mainly due to ISM data showing faster-than-expected U.S. economic growth, triggering concerns about sustained inflation, leading to a surge in bond yields, with the 10-year Treasury yield reaching its highest level since April."

BTC Markets cryptocurrency analyst Rachael Lucas pointed out, "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. The market was previously unsettled by remarks from Fed Chair Powell in December, which indicated the Fed's firm stance on monetary policy and undermined market hopes for further rate cuts, thus exacerbating volatility. Looking ahead, the market is expected to be volatile due to anticipation of policy changes around Trump's presidential inauguration on January 20."