TechFlow news, January 23: The cryptocurrency market experienced a downturn, with the total market capitalization dropping approximately 3% to $3.54 trillion. Major cryptocurrencies such as Bitcoin and Ethereum declined around 2.5% over the past 24 hours.
According to Nancy Lubale, crypto analyst at Cointelegraph, this decline was primarily driven by multiple factors:
1. The anticipated executive order related to cryptocurrencies promised by Trump has not yet been released;
2. Stronger-than-expected U.S. services sector growth led to rising Treasury yields;
3. The U.S. Dollar Index strengthened for the third consecutive trading day, increasing from 107.75 on January 22 to 108.40;
4. The Federal Reserve signaled only two rate cuts in 2025, fewer than the previously expected three. Current futures markets indicate a 99.5% probability that the Fed will hold rates steady at its January 29 meeting, with the first possible rate cut occurring in June at a probability of 44.8%.
