The digital currency market faced a significant decline on Tuesday morning, and the release of US economic data this week may bring further pressure to this market. Following Donald Trump’s inauguration last week, the price of Bitcoin reached its all-time high on January 20 but has now entered a downward phase. Trump has promised to request a decrease in interest rates by the Federal Reserve after a possible drop in oil prices, but success in this regard remains uncertain. Consumer confidence data is scheduled to be released on Wednesday, and the first meeting of the Federal Reserve’s Open Market Committee (FOMC) in 2025 will also be held on Thursday. The outcome of this meeting may provide insights into monetary policies in the new presidential term. On Friday, the initial estimate of the fourth quarter GDP growth in 2024 will be released, with a predicted decrease to 2.7% from 3.1% in the third quarter. Depending on the outcome, expectations for an interest rate cut may be influenced. The PCE report, a monthly consumer spending indicator, will also be released on Saturday, which is a key metric for inflation assessment. Meanwhile, analyst Ali Martinez noted that long-term Bitcoin holdings by investors decreased by over 75,000 units last week, indicating profit-taking by long-term investors. In the past 6 hours, the digital currency market lost $175 billion of its value, dropping to $3.56 trillion. In the last 24 hours, 228,000 traders have been affected, with liquidated positions totaling $615 million. The price of Bitcoin has dropped by over 5% to below $100,000, and Ethereum has plummeted by over 6% to $3,100. Altcoins like Solana, Dogecoin, and Shiba Inu have also experienced further declines. You can view the live prices of all tokens and cryptocurrencies on the real-time digital currency prices page.
