Synopsis
Bitcoin continued to decline over 2% to $94,357 as strong U.S. economic data indicated fewer rate cuts by the Fed in 2025. Rising U.S. Treasury yields and a stronger Dollar also pressured Bitcoin. The global crypto market cap fell by 1.73% to $3.31 trillion.
Bitcoin extended its decline for another day, falling over 2% to $94,357 on Thursday after strong US economic data suggested a robust economy, reinforcing the case for fewer rate cuts from the Federal Reserve.
Recent data showed that US services sector activity accelerated in December, and job openings increased in November. This resilience in the American economy signals fewer rate cuts from the Fed in 2025.
Markets are now pricing in the probability of just one rate cut from the Fed in 2025, down from two in December, according to the CME FedWatch tool. Previously, the Fed had indicated two rate cuts for this year, half of what was earlier expected.
Crypto TrackerTOP COIN SETSWeb3 Tracker-0.99% BuyCrypto Blue Chip – 5-2.66% BuyBTC 50 :: ETH 50-2.83% BuyNFT & Metaverse Tracker-7.65% BuyDeFi Tracker-8.95% BuyTOP COINS (₹) XRP202 (2.36%)BuyBNB59,977 (1.32%)BuyTether86 (0.1%)BuyEthereum285,604 (-0.28%)BuyBitcoin8,106,831 (-1.8%)BuyMeanwhile, rising U.S. 10-year Treasury yields, which have risen to 4.68%, near multi-year highs, and a stronger Dollar Index, currently above 109, have also pressured Bitcoin, reducing demand and pushing its price lower.
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View Details »At 11:00 am IST, Bitcoin was trading at $94,357, down 2.2%, with an intraday low of $92,525.
“The recent price fluctuations have been attributed to stronger-than-expected U.S. economic data, prompting profit-taking among investors and contributing to a shift in market sentiment.” said Shivam Thakral, CEO of BuyUcoin.
“While the outlook appears bearish, many investors remain optimistic about Bitcoin’s long-term prospects, suggesting that the market may stabilize and recover soon,” Thakral added.
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Avinash Shekhar, Co-Founder & CEO, Pi42, “Bitcoin’s recent bearish engulfing candle and fall to $92,500 serve as a reminder of increased volatility in the crypto market. On-chain metrics show that although liquidity inflows are robust, driven by expanding stablecoin supplies, macroeconomic factors such as better-than-expected US job growth weighed on prices.”
“Bitcoin could now consolidate at levels around $90,000 and further correction, possibly toward $71,500,” Shekhar added.
Other major altcoins traded mixed, including Ethereum (-1%), Solana (-1%), Dogecoin (-3.33%), Cardano (-6%), Avalanche (-4.4%), Stellar (-3.5%), and Shiba Inu (-2.1%) declined, while XRP, BNB, Sui, and Tonocin were up to 2% higher. The global crypto market cap dropped by 1.73%, reaching $3.31 trillion.
“All major altcoins continue to bleed, with only XRP and Sui showing resilience. Bitcoin must trade above $94,000 for the market to maintain momentum. $92,000 and $90,000 should act as strong support levels in case of any further dip,” said Vikram Subburaj, CEO of Giottus.
Also Read: Understanding the role of Bitcoin in modern investment portfolios
The volume of all stablecoins is now $152.99 billion, which is 92.52% of the total crypto market 24-hour volume, as per data available on .
In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, fell to $1.870 trillion. Bitcoin’s dominance is currently 56.4%, according to . BTC volume in the last 24 hours surged 2.7% to $64.1 billion.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)