Bitcoin has swung wildly after robust U.S. jobs data sapped expectations of Federal Reserve interest rate cuts and sent stock markets spiraling.
Unlock over $3,000 in NFT, web3 and crypto perks — Apply now!
The bitcoin price dropped to around $92,000 per bitcoin, restarting a sell-off that had lost steam earlier this week amid fears of a looming bitcoin price crash.
Now, as Tesla billionaire Elon Musk issues a surprise bitcoin price warning, crypto traders are scrambling to assess what the latest changes to Fed rate cut expectations mean for the bitcoin price.
Sign up now to receive CryptoCodex – a five-minute newsletter for traders, investors and the crypto-curious that will keep you informed and ahead of the bull run in the bitcoin and cryptocurrency market.
“Bitcoin’s decline below $93,000 highlights the growing influence of macroeconomic conditions,” Ryze Labs analysts wrote in an emailed note. “Liquidations totaled more than $1 billion this week, with long positions accounting for the majority as investors were forced to unwind their leveraged bets. “
The U. S. economy added 256,000 jobs in December, the largest monthly gain since March, beating expectations of 155,000 new jobs. The unemployment rate fell to 4. 1%.
The latest insights bolstered the Federal Reserve’s case for keeping interest rates unchanged after cutting them by one percentage point through 2024, while investors in the past bet that the interest rate would continue to fall through 2025.
Expectations of lasting higher interest rates in the United States have also boosted bond yields considerably, with the 10-year US Treasury yield peaking since 2023 and weighing on stocks as the The appeal of higher bond yields drives stocks and risky assets higher. like bitcoin and cryptocurrencies are less attractive.
“There is a threat that Bitcoin will fall back below $92,000, which could worsen Bitcoin’s technical sentiment and the value could increase its loss to $80,000,” Yuya Hasegawa, a Bitcoin and crypto market analyst at Tokyo-based Bitbank, said in emailed comments.
“This week saw a competitive sell-off in the value of bitcoin, falling from a high of $103,000 to $91,500,” John Glover, chief investment officer at crypto lending platform Ledn, said in emailed comments, adding that it may there will be a drop between $80,000 and $85,000. if it fails above $90,000.
While many Bitcoin and cryptocurrency investors are nervously watching the near-term outlook for the value of Bitcoin and the cryptocurrency market, others are confident that a downturn will be short-lived.
Sign up now for CryptoCodex: A Free Newsletter for the Crypto-Curious
The value of bitcoin has retreated from its recent high, but it is still much higher than it was a year ago.
“With just ten days left until President Donald Trump’s inauguration, volatility will most likely persist in markets,” Ryze analysts said, adding: “Despite near-term challenges, structural factors Bitcoin, such as institutional adoption and growing integration into the global monetary system, continues with a bullish outlook for 2025.
Others, however, remained positive following the latest U. S. economic data. The U. S. Department of Homeland Security predicted that the prospects could simply increase Bitcoin’s value.
“This favorable economic backdrop is a significant tailwind for Bitcoin, which has a tendency to thrive in an environment of developing investor confidence,” said Matt Mena, crypto research strategist at Bitcoin and crypto investment company 21Shares. , in emailed comments, pointing to “the market. ” sentiment. “company in threat mode,” which may position Bitcoin for “further value discovery” in the coming weeks.
“Notably, the strong jobs report could provide the momentum needed to break through the $100,000 level once again and surge past the $108,000 all-time high—both critical psychological barriers that has recently capped bitcoin’s gains.”
A community. Many voices. Create a free account to share your thoughts.
Our network aims to connect others through open and thoughtful conversations. We need our readers to share their perspectives and exchange ideas and facts in one space.
To do so, please comply with the posting regulations in our site’s terms of use. We summarize some of those key regulations below. In short, civilians.
Your message will be rejected if we realize that it seems to contain:
User accounts will be blocked if we become aware that users are engaged in:
So, how can you be a user?
Thank you for reading our Community Guidelines. Read the full list of publishing regulations discovered in our site’s terms of use.