After a strong rally at the beginning of January, Bitcoin and Ethereum experienced a phased correction, but the market did not turn pessimistic. Instead, attention shifted to the Federal Reserve’s rate cut expectations within the year. On Thursday, Bitcoin hovered around $91,000, with the initial rebound momentum cooling down, but the overall risk environment still favored supporting crypto assets.
According to market data, Bitcoin fell about 2% in the past 24 hours but still gained over 3% in the past 7 days; Ethereum retreated approximately 3% on the day, with a weekly increase close to 6%. Among mainstream altcoins, XRP experienced a larger short-term decline, down about 4.5% in 24 hours, but still accumulated a 17% increase over the week; Dogecoin continued to lead, with a weekly gain of over 22%, indicating that the market’s preference for high-elasticity assets has not yet faded.
The market correction in cryptocurrencies is closely related to macroeconomic changes in traditional financial markets. Bloomberg pointed out that recent weak economic data has strengthened market bets on the Fed cutting rates later this year. As a result, U.S. Treasury prices generally rose, with the 10-year Treasury yield falling to around 4.14%. Data from ADP Research showed that in December, private sector employment increased by 41,000 jobs, below the market expectation of 50,000, further fueling expectations of easing policies.
Interest rate futures markets once again priced in the possibility of at least two rate cuts of 25 basis points each within the year. Asian bond markets also strengthened, with Australian and New Zealand government bond prices rising, and Japanese 30-year government bond futures maintaining gains after auctions.
This environment is significant for cryptocurrencies. B2BINPAY analysts noted that crypto assets are still fundamentally viewed as risk assets, with their performance highly dependent on macro liquidity and market sentiment dominated by Bitcoin. Under easing expectations, funds are more likely to flow from cash and low-yield assets into high-risk, high-volatility assets like Bitcoin and Ethereum.
However, the current correction also reminds the market that the early January rally was not a one-way straight line. Post-holiday trading resumption, reallocation of funds, and a phased rebound in demand for traditional assets could still pose challenges to Bitcoin’s price. Short-term volatility does not mean the end of the trend; rather, it may be a necessary digestion period before the next market rally.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Wintermute Suggests Bitcoin Miners Convert BTC Holdings into Yield-Bearing Assets to Counter Profitability Pressures
Wintermute notes that Bitcoin miners face profitability challenges due to reduced income after the halving and high energy costs, recommending that miners proactively manage their BTC holdings by adopting strategies such as using derivatives and lending protocols to enhance returns in response to market pressure.
GateNews1m ago
Miner profits under pressure! Wintermute states that Bitcoin mining companies must shift to AI or activate BTC asset yields.
Wintermute reports that Bitcoin miners face declining revenue pressure, with traditional mining profitability difficult to increase. Mining enterprises are considering transitioning to AI computing power business to maintain competitiveness, but this requires substantial capital investment. The report believes this profitability pressure differs from previous cycles and resembles more of an industry structural adjustment. The industry is expected to become more concentrated and efficient.
GateNews3m ago
Bitcoin Regulatory Controversy Escalates: BPI Criticizes Basel Rules for Treating BTC as "Toxic Asset"
The Bitcoin Policy Institute (BPI) opposes the Basel Committee's high risk weighting standards set for Bitcoin, arguing that this will restrict banks from participating in crypto asset businesses. The BPI is calling on U.S. regulators to reassess Bitcoin's risk classification, pointing out that the current framework treats it as a "toxic asset," significantly increasing the cost for banks to hold Bitcoin. This issue could impact traditional financial institutions' strategies in the digital asset space.
GateNews5m ago
Robert Kiyosaki Warns of 2026 Market Crash, Recommends Bitcoin, Gold and Oil
Robert Kiyosaki, author of Rich Dad Poor Dad, has issued a warning that a historic global stock market crash could begin in 2026, linking the potential downturn to unresolved structural issues from the 2008 financial crisis and rising global debt levels.
CryptopulseElite5m ago
Bitwise CIO Matt Hougan Says Bitcoin Could Hit $1M as Store-of-Value Demand Grows
Matt Hougan says Bitcoin could reach $1M through growing store-of-value demand.
Bitcoin currently holds under 4% of the global store-of-value market.
A $121 trillion market could push Bitcoin to $1M with 17% share.
Bitcoin — BTC, often attracts bold price forecasts, yet few carry the
CryptoNewsLand26m ago
Bitcoin Investor Commits to Distributing $100 Monthly to All Nevis Residents, Project Faces Criticism from Opposition
Bitcoin investor Olivier Janssens has proposed a plan to pay all residents on the Caribbean island of Nevis $100 monthly to promote his libertarian community project Destiny. The project has faced criticism from opponents, who have characterized the initiative as coercion and bribery. The project involves billions of dollars in development and plans to purchase 2,400 acres of land.
GateNews31m ago
