Bitcoin, ETHEREUM prices extend losses as stocks decline – what is the next of the markets?

Wall Street slipped on Monday while investors prepared for major inflation data and re -evaluated the Federal Reserve Policy, while encryption remained under pressure despite a series of positive organizational developments.

High trade tensions and fears of inflation add to a risk feeling, with bitcoin and ethereal decrease alongside stocks.

The S& P 500 index decreased by 2.6 %, NASDAQ-100 3.1 % lost, and the Dow Jones industrial rate decreased by 2.2 %, as merchants moved to the side lines before the inflation report this week.

Nikkei 225 and Hang Seng Futures pointed to more losses in Asia, indicating the continued global market stress.

Crypto reflected this shrinkage, as Bitcoin fell by 5.8 % to $ 76,838 over the past 24 hours and ETHEREUM reduced by 11.5 % to $ 1795, according to CONINECKO data. Both digital assets have decreased by 19 % and 29 % over the past thirty days.

While the signs of expansion of liquidity can provide relief this year, the uncertainty about capital flows and monetary policy continued to pressure the assets of risk.

At the same time, President Donald Trump is preparing to sign an executive order aimed at reverse Sources of the outstanding banking policies said in its place during the Biden administration. Decipher on monday.

It is expected that it will decline to initiatives linked to “ChokePoint 2.0“The controversial banking restrictions that he claimed targeted the encryption companies.

It may also include directives on Stablecoin classification and federal banking services, which enhances the position of the White House in support of the home after the recent Trump batch to create the United States Bitcoin Reserve.

Investors are now focusing on the Consumer Prices Index report on Wednesday (CPI), which is expected to show a 0.3 % increase in February prices, uniquely from 0.5 % profit in January.

The consumer price index is expected to be on an annual basis by 2.9 %, just less than 3 % in January, while the basic inflation is expected to remain 3.2 %, according to Marketwatch. Data.

Any bullish surprise may enhance the expectations that the Federal Reserve will delay discounts in price rates, which increases risk assets – including stocks and encryption.

Liquidity mutation?

Although the M2 Money Supply expanded in 2024 and remained this year, the uncertainty about the following moves at the Federal Reserve and the tightening of financial conditions kept the assets of risk.

The public budget for the federal reserve coach continued to decline, decreasing to 6.75 trillion dollars, from April 2022 near 9 trillion dollars, as part of the continuous quantitative tightening program.

While broader liquidity indicators such as M2 indicate stability, the federal reserve position is cautious Economic inflation And control the financial soul in the form Dog Eleon Musk They maintain the defense of investors.

However, some analysts see changing liquidity conditions that can benefit from risk assets in the coming months.

Jimmy Cots, chief encryption analyst at Real SAR, pointed out that the most severe US dollar has decreased since the global financial crisis, helping to reduce debt costs and injection of liquidity into the markets.

He told the newspaper, “These are minds Decipher.

Courts added that although markets focus on definitions and financial emphasis, many of them misunderstand spending discounts.

He said: “When the United States government reduces waste, it provides a greater role for the private sector-which is harmful to developing the economy that is moved by growth and innovation.”

This can give the Federal Reserve more length lines to implement price cuts and ultimately ending QT, especially as Trump moves to stimulate the economy before the middle of the United States.

However, the markets will need to face continuous trade tensions, with the US tariff in China and Canada, which have been identified for the next month, raising concerns about the global economic slowdown and pushing inflation to the top.

With inflation data and US federal budget report on Wednesday, the markets are likely to remain volatile.

But with Trump pushing the policies supporting crying and liquidity trends, the look of digital assets can deviate from the wider risk markets, Decipher It was said.