iM Securities says crypto rally weakening as key drivers face constraints

The upward momentum that has supported the cryptocurrency market is weakening, leading to increased downward pressure, EToday reported, citing a new report from iM Securities. According to the report, the market had been buoyed by five key factors through September of this year: the effects of the Bitcoin halving, President Trump's pro-crypto policies, aggressive buying from digital asset treasuries (DATs), expectations of U.S. interest rate cuts, and a weaker U.S. dollar. Yang Hyun-kyung, a researcher at iM Securities, noted that downward pressure is now intensifying as all five of these pillars have recently come under constraint. Yang explained that a series of hawkish remarks from U.S. Federal Reserve officials has diminished expectations for an additional rate cut in December. The researcher also highlighted that a rebound in the U.S. dollar during the second half of the year has tightened global liquidity, causing a rapid decline in risk appetite and contributing to the market's current weakness.