Bitcoin’s price rose sharply as the stock market soared as expectations for the Federal Reserve’s interest rate cuts waned following strong US employment data.
Unlock $3,000+ in NFT, Web3, and Crypto Benefits — Apply Now!
Bitcoin prices have fallen to around $92,000 per Bitcoin, resuming a selloff that lost momentum earlier this week as a Bitcoin price crash looms.
Now that Tesla billionaire Elon Musk has issued a surprise warning on Bitcoin prices, crypto traders are looking to see what the latest changes to Fed interest rate cut expectations mean for Bitcoin prices. I’m really excited about it.
Sign up for your free CryptoCodex today. A daily 5-minute newsletter for traders, investors, and crypto enthusiasts to stay informed and ahead of bull runs in the Bitcoin and crypto markets.
Markets are dampening expectations that Federal Reserve Chairman Jerome Powell will cut interest rates. … (+)
Getty Images
“Bitcoin’s retreat below $93,000 highlights the growing influence of macro conditions,” Ryze Labs analysts said in an emailed note. “Liquidations this week totaled more than $1 billion, dominated by long positions as traders were forced to unwind leveraged bets.”
The U.S. economy added 256,000 jobs in December, the biggest gain for the month since March and beat expectations of 155,000 new jobs. Meanwhile, the unemployment rate fell to 4.1%.
Traders had previously expected interest rates to continue falling through 2025, and the latest data supported the Fed’s insistence that it would keep rates unchanged through 2024 after cutting them by 1 percentage point.
Expectations for longer U.S. interest rates have also sent bond yields surging, with the 10-year U.S. Treasury yield surging to its highest level since late 2023, and stocks rising as the lure of high returns on bonds pushes stocks and risk assets higher. It has become a burden. Things like Bitcoin and cryptocurrencies are less appealing.
“There is a risk that Bitcoin will fall below $92,000 again, Bitcoin’s technical sentiment may worsen, and the price could extend losses to $80,000,” the Tokyo-based company said. Yuya Hasegawa, Bitcoin and virtual currency market analyst at BitBank, said in an emailed comment. .
“Bitcoin prices have fallen aggressively this week from a high of $103,000 to $91,500,” John Glover, chief investment officer at crypto lending platform Redon, said in an emailed comment. , adding that it could fall to $80,000 to $85,000. If support fails for more than $90,000.
While many Bitcoin and crypto traders are nervously watching the near-term outlook for Bitcoin prices and the crypto market, some are confident that the economic downturn will be short-lived.
Sign up for CryptoCodex today. A free daily newsletter for anyone interested in cryptocurrencies.
Although the price of Bitcoin has come down from its recent peak, it is still much higher than before. … (+)
forbes digital assets
Rise analysts said, “With President Donald Trump’s inauguration just 10 days away, overall market volatility is likely to continue.” “The coin’s structural drivers, such as institutionalization and greater integration into the global financial system, are at play,” he added. We continue to support our bullish outlook for 2025. ”
However, some remain bullish following the latest US economic data, predicting that the outlook could push Bitcoin prices higher.
“This favorable economic backdrop means that Bitcoin tends to grow in an environment of increased investor confidence,” Matt Mena, crypto research strategist at Bitcoin and crypto investment firm 21Shares, said in emailed comments. “This will be a big tailwind for Japan,” he said, pointing to “market sentiment.” With Bitcoin firmly in risk-on mode, Bitcoin could be positioned for “further price discovery” in the coming weeks.
“In particular, a strong jobs report could provide the momentum needed to break through the $100,000 level again and soar past the all-time high of $108,000. It is an important psychological barrier that holds back
