On Tuesday, the cryptocurrency market experienced a setback when Bitcoin (BTC) dipped below the $100,000 level. This downward trend was influenced by robust U.S. economic reports that dimmed enthusiasm for digital currencies, undoing previous advancements.
According to the Bureau of Labor Statistics, there was a surprising rise in job openings for November, totaling 8.1 million – exceeding predictions that anticipated only 7.7 million positions.
As a crypto investor, I’ve been keeping an eye on the ISM Services Purchasing Managers Index, which is a key indicator of economic activity in the services sector. To my delight, it climbed up to 54.1 in December from 52.1 in November, surpassing expectations of 53.3. That’s good news! However, one aspect that caught my attention was the Prices Paid subindex, which jumped to 64.4. This suggests that costs are on the rise, which could potentially impact businesses and consumers in this sector. It’s always important to stay informed about such trends as they can influence market dynamics.
Although these reports typically don’t cause significant market shifts, they added to the unease in financial markets that are already on edge due to interest rate predictions. As a result, the yield on 10-year U.S. Treasury bonds climbed to nearly peak levels at 4.68%. Meanwhile, U.S. stocks experienced a downturn, with the Nasdaq dropping by more than 1%, and the S&P 500 losing 0.4% during early trading.
In the past day, Bitcoin (BTC) dropped from approximately $101,000 to $96,600, marking a decline of around 5% following the disclosure of robust economic figures. Major cryptocurrencies experienced steeper decreases, with Ethereum (ETH) and Solana (SOL) dipping by 6%–7%, while Avalanche (AVAX) and Chainlink (LINK) plunged 8%–9%.
A decrease in price resulted in approximately $300 million worth of losses for traders who anticipated higher costs, constituting the initial major market disruption of the year, as reported by CoinGlass.
It seems that the probability of a rate reduction in January has diminished; currently, it stands at 37%, which is lower than the 50% predicted just a week ago, as indicated by the CME FedWatch tool. This indicates that investors are less optimistic about a rate cut happening in January.
In simpler terms, it’s unlikely that there will be a rate reduction in May, and experts like Kyle Chapman predict that investors are anticipating just one minor rate decrease of 0.25% throughout the entire year of 2025 from the Ballinger Group.
Read More
- 15 Charged for converting Drug Cartels’ Cash into Cryptocurrency in U.S.
- OREO Unveils Six New Products for 2025
- XRP Price Eyes $2 Support Level Amidst Market Correction
- PYTH PREDICTION. PYTH cryptocurrency
- Paul Atkins to Replace Gary Gensler as Next SEC Chair?
- ‘Brides’ Finds a Distributor in Neon for Latest New Vampire Horror Movie
- Apple Lands Anya Taylor-Joy Led Drama ‘Lucky,’ Based on Bestseller
- TROTOAR Gallery Bridges Local and Global Art with ‘That’s What’s Up!’
- ‘Fast and Furious’ Star Paul Walker Remembered 11 Years After His Death
- Ben Affleck And Matt Damon Are Back To Work Together, And An Insider Weighed In On Their Longtime Connection
2025-01-07 22:13