Cardano’s ADA Drops 8% as Traders Anticipate Bitcoin Rally
Cardano's ADA experienced significant losses on Thursday, leading declines among major cryptocurrencies as bitcoin (BTC) continued to weaken. Key points include:
- Bitcoin fell to nearly $93,000 following stronger-than-expected U.S. economic data, driving treasury yields higher and impacting equities.
- The Institute for Supply Management (ISM) report indicated rising prices in the service sector, the highest since early 2023.
- Other major cryptocurrencies such as ADA, Solana's SOL, BNB Chain (BNB), and ether (ETH) dropped around 10% since Monday.
- The CoinDesk 20 index declined by 2.87% over the past 24 hours, following a previous 7% drop.
- Options on the S&P 500 suggest increased downside risk, affecting traders' preferences towards safer assets like bonds.
- Concerns regarding President-elect Donald Trump's upcoming inauguration may lead to a "sell-the-news" event, influencing market sentiment.
- QCP Capital advises monitoring upcoming U.S. economic data for potential impacts on bitcoin's price.
- The Non-Farm Payroll (NFP) report will provide insights into job creation, with strong numbers potentially indicating interest rate hikes that could negatively affect bitcoin.
This evolving situation indicates cautious positioning ahead of significant economic releases.