Bitcoin (BTC-USD) slid to its lowest point since late November, reflecting continued bearish sentiment in the broader market following an unexpectedly robust U.S. jobs report.
By 11:44 am GMT, Bitcoin had dropped 3.3%, trading at $91.1K. The decline coincided with a broader downturn in risk assets, including U.S. stock index futures.
U.S. Jobs Data Stokes Market Uncertainty
Friday’s jobs report, which exceeded expectations, bolstered the case for a more cautious approach to Federal Reserve interest rate cuts.
The U.S. Bureau of Labor Statistics revealed an impressive 256,000 increase in nonfarm payrolls for December 2024, far surpassing the consensus estimate of 157,000. Additionally, the unemployment rate dipped to 4.1%, slightly below the forecasted 4.2%.
The stronger-than-anticipated report has prompted revisions to interest rate forecasts.
Goldman Sachs now anticipates just two more rate cuts in 2024, while Bank of America predicts no further cuts, citing increased risks that the Federal Reserve may pivot toward raising rates instead.
Bitcoin Struggles to Gain Momentum
Bitcoin has faced challenges early in 2025, crossing the $100K threshold only twice so far this year. The cryptocurrency remains under pressure as macroeconomic conditions weigh heavily on investor sentiment.
Crypto-Linked Stocks Take a Hit
The downturn in Bitcoin’s value also impacted crypto-related stocks:
- Marathon Digital (MARA): -4.5%
- Riot Platforms (RIOT): -5%
- MicroStrategy (MSTR): -5%
- HIVE Digital (HIVE): -3.3%
- CleanSpark (CLSK): -4.9%
- Bit Digital (BTBT): -7.7%
- Bitfarms (BITF): -6.2%
- Coinbase Global (COIN): -4.5%
As the crypto market continues to react to macroeconomic developments, investors remain cautious, closely monitoring the Federal Reserve’s monetary policy trajectory and its potential impact on risk assets.
