Crypto

Bitcoin Dips Below $97K Amid Strong US Economic Data

22
Bitcoin (BTC)

Bitcoin dropped 5% to $96,602, breaking below the $97,000 mark as positive US economic data raised concerns over delayed Federal Reserve rate cuts.

This decline led a broader crypto market downturn, wiping 7.2% off the total market cap, now at $3.5 trillion.

The drop followed reports showing a surprise increase in job openings and a strong services sector in December, pointing to a resilient economy.

As a result, Treasury yields surged to their highest levels since April, reflecting expectations that the Fed may keep or even raise interest rates.

These higher rates make riskier assets like Bitcoin less attractive compared to safer investments like bonds.

The downturn also saw $555 million in long positions liquidated in the derivatives markets, marking the first major liquidation event of the year.

The market’s volatility is expected to continue as traders adjust leverage and await key events like Donald Trump’s inauguration on January 20 and the Fed’s interest rate decision on January 29.

Written by
Sazid Kabir

I've loved music and writing all my life. That's why I started this blog. In my spare time, I make music and run this blog for fellow music fans.

Related Articles

BTC Bitcoin
Crypto

GameStop Makes $513 Million Bitcoin Buy, Eyes Crypto Future

GameStop has made its first big move into Bitcoin by buying about...

Bitcoin BTC
Crypto

Big Companies Are Buying Bitcoin — Price Could Explode

Bitcoin is about to face a big change. David Marcus, CEO of...

DOGE COIN
Crypto

Analyst Sees 113% Upside for Dogecoin Amid XRP Comparison

Dogecoin (DOGE) has experienced a volatile week with mixed price action but...

Binance Coin BNB
Crypto

BNB Bulls Eye $750 as Price Struggles Near $700 Resistance

Binance Coin (BNB) recently reached a high of $697 before pulling back...