Cryptocurrency markets are experiencing heightened volatility on January 9, 2025, as investors react to the Federal Open Market Committee's (FOMC) December meeting minutes, which highlighted increased inflation risks. The minutes revealed that most participants see upside risks to inflation, citing stronger-than-expected inflation readings and potential disruptions in global supply chains. This has led to concerns about a slower-than-expected pace of monetary easing, which is dampening sentiment in the crypto market. High interest rates increase the opportunity cost of holding non-yielding assets like cryptocurrencies, contributing to the sell-off. Additionally, significant outflows from Bitcoin Spot ETF products in the U.S. are exacerbating the negative sentiment, with $569 million in outflows recorded on Wednesday.
Coinbase, a major player in the cryptocurrency space, is also facing legal challenges that are impacting its stock. A recent court ruling allows Coinbase to challenge the SEC in the Second Circuit Court of Appeals, pausing district court proceedings. This legal battle centers on whether digital assets on Coinbase qualify as securities, a decision that could have far-reaching implications for the crypto industry. Despite this legal victory, Coinbase's shares have reportedly dropped more than 8% amid the broader market volatility.
The Yieldmax Coin Option Income Strategy ETF (CONY) is trading at $12.56, down 0.52% as of 10:00 AM ET on January 9, 2025.