Bitcoin Loses Momentum, Falls Below $97.5K Amid Jobs Data and FOMC Minutes Release
Bitcoin bulls lost their bullish momentum in the crypto market again as the price fell below $97.5K, from an intraday high of $102,712. Traders anticipate an overall bullish outlook at the start of 2025 as the crypto-friendly Donald Trump administration takes control on January 20. However, the markets braced for temporary liquidity concerns and volatility risks amid jobs data and FOMC minutes release.
Bitcoin Loses Earlier Gains After Jobs Data
The JOLTS jobs openings increased by 259,000 to 8,098 million for November 2024, according to the U.S. Bureau of Labor Statistics. This indicates the labor market remains strong and the Fed rate cuts may be limited in 2025. JOLTS jobs data has increased for two consecutive months now. The job openings have increased in professional and business services, finance and insurance, and private educational services.
Meanwhile, ISM Services Prices PMI shows the US economy remains strong. The resilience of the US ahead of Trump’s inauguration day fueled concerns about volatile market conditions. In fact, US stocks declined on Tuesday, ending a two-day rally, as fresh economic data fueled speculation that the Federal Reserve may keep rates steady this month despite rising inflation.
This caused the US dollar index (DXY) to rebound sharply over 108.50, after a two-day low move that caused a recovery in Bitcoin price. Also, the 10-year Treasury yield increased to a 35-week high of 4.68%.
BTC Price Falls 5% Within An Hour
BTC price fell 5% in the past 24 hours, with the price currently trading at $97,566. The 24-hour low and high are $97,153 and $102,712, respectively. Furthermore, the trading volume has increased by 27% in the last 24 hours, indicating a decline in interest among traders.
Bitcoin price has skyrocketed over 10% in a week and may break above the previous ATH on bullish macroeconomic and technical factors. The upside move is supported by inflows into the spot Bitcoin ETFs, indicating institutional interest returning.
According to K33 Research, Bitcoin and crypto prices jumped after the strongest 2-day flow to ETFs since mid-November. Moreover, BTC open interests inches higher, recording a solid 7-day streak of positive daily returns.
The price of Bitcoin has jumped back to the $100,000 mark, a sign that shows the Coinbase Premium Index is back to positive.
Bitcoin Price Hits Over $102K On Donald Trump’s Inauguration
Bitcoin price surged to over $102,000 on Donald Trump’s inauguration day, a sign of strong institutional interest and a vote of confidence in the crypto market.
Conclusion
In conclusion, the Bitcoin price has fallen below $97.5K amid jobs data and FOMC minutes release, but traders anticipate a bullish outlook at the start of 2025. The labor market remains strong, and the Fed rate cuts may be limited in 2025. The price of Bitcoin has jumped back to the $100,000 mark, a sign that shows the Coinbase Premium Index is back to positive.
FAQs
Q: What caused the Bitcoin price to fall below $97.5K?
A: The Bitcoin price fell below $97.5K amid jobs data and FOMC minutes release, which indicated a strong labor market and a potential for limited Fed rate cuts in 2025.
Q: What is the current state of the US economy?
A: The US economy remains strong, with the JOLTS jobs openings increasing for two consecutive months and the ISM Services Prices PMI showing resilience.
Q: What is the Coinbase Premium Index?
A: The Coinbase Premium Index is a measure of the premium of the Bitcoin price on Coinbase compared to other exchanges. A positive value indicates strong institutional interest and a vote of confidence in the crypto market.
Q: What is the current trading volume of Bitcoin?
A: The trading volume of Bitcoin has increased by 27% in the last 24 hours, indicating a decline in interest among traders.
Q: What is the current price of Bitcoin?
A: The current price of Bitcoin is $97,566, which is a 5% fall from the previous day.
