Crypto Market Volatility Rises as US Futures Drag Bitcoin and Ethereum
Bitcoin and Ethereum prices declined recently, largely influenced by weakening US equity futures. Market participants expressed concerns over potential risks posed by artificial intelligence (AI), with this sentiment extending to technology stocks and other sectors, reducing investor appetite for risk assets.
- Bitcoin fell 0.8% to $68,279.
- Ethereum dropped 0.7% to $1,984.
Investors are closely watching the release of the Federal Reserve’s meeting minutes on Wednesday and the US personal consumption expenditures (PCE) price index and fourth-quarter GDP data on Friday for insights into future policy directions.
Macro Conditions as the Key Driver for Crypto Markets
Analysts from a leading bank noted that the current market focus is on whether macro stability can drive sustained inflows into cryptocurrency exchange-traded funds (ETFs). While short-term volatility increases, the long-term outlook still hinges on the Fed's policy communication and inflation data trends.
Data from the London Stock Exchange Group showed minor pullbacks for both Bitcoin and Ethereum, reflecting cautious investor behavior ahead of key data releases.