Investing.com — Bitcoin fell slightly on Monday as a better-than-expected U.S. jobs report sparked caution among traders and strengthened the Federal Reserve’s view that interest rate cuts will be tapered in 2025. It fell for three consecutive days.
By 01:12 ET (06:125 JST), the stock was down 0.3% at $94,268.7.
Bitcoin prices plunged last week, falling in six of the past seven sessions as a potential token sale by the US government hurt sentiment towards the cryptocurrency.
US interest rate fluctuations raise liquidity concerns
Friday’s “Solid US” report confirmed the Fed’s outlook that it will cut interest rates less this year. The U.S. economy added 256,000 jobs in December, more than expected by 153,000, and the unemployment rate fell to 4.1% from 4.2% in November.
This positive labor market trend suggests the Fed may take a more cautious approach to monetary easing.
Rising interest rates often lead to a stronger U.S. dollar and less liquidity in financial markets, which can put downward pressure on Bitcoin and other cryptocurrencies.
Additionally, rising U.S. Treasury yields are associated with falling Bitcoin prices, with some analysts suggesting that Bitcoin’s value could fall to around $90,000 if yields continue to be high. are.
Pressure on Bitcoin due to government selloff report
Another factor influencing Bitcoin market dynamics is the possibility that seized cryptocurrencies will be sold by governments.
Last week, media reports emerged that the Justice Department had received court approval to sell approximately $6.5 billion worth of Bitcoin seized from the Silk Road black market.
The US government has previously liquidated Bitcoin assets acquired through law enforcement actions, and potential future sales could create additional supply to the market and impact prices.
This is also likely to go against the idea of a strategic Bitcoin reserve under Donald Trump’s administration, further weighing on the token.
Cryptocurrency prices today: Most altcoins record a bigger decline than Bitcoin
Bitcoin’s performance continues to influence other digital assets in the broader cryptocurrency market.
The world’s second-largest cryptocurrency fell 1.6% to $3,229.02.
Bucking the trend, the world’s third-largest cryptocurrency rose 3.8% to $2.5139.
decreased by 1.3%, 4.8%, and 6.2%. Meme tokens fell 3.2%.
