Bitcoin ( $BTC ) fell sharply from an intraday high of $102,712 to $97,566, losing 5% in value within 24 hours. Increased market volatility follows strong U.S. jobs data and speculation over the Federal Reserve's next rate move.
📊 Jobs Data Signals Limited Rate Cuts
The JOLTS jobs report revealed an increase of 259,000 job openings, signaling a resilient U.S. labor market. Additionally, ISM Services Prices PMI indicates economic strength, reducing expectations of aggressive Fed rate cuts in 2025.
💵 DXY and Treasury Yields Spike
The U.S. dollar index (DXY) rebounded sharply above 108.50, and the 10-year Treasury yield hit a 35-week high of 4.68%. This spike pressured Bitcoin, causing a decline in trading interest despite increased volume by 27% in the past day.
📈 ETF Inflows Support Long-Term Bullish Outlook
Despite the pullback, inflows into spot Bitcoin ETFs remain strong. Analysts from K33 Research reported the most significant 2-day ETF flow since mid-November, supporting institutional confidence in Bitcoin’s long-term trajectory.
🚀 Trump’s Pro-Crypto Policies Fuel Optimism
Investors are optimistic about Donald Trump’s pro-crypto administration, expected to push for regulatory clarity post-inauguration on January 20. This anticipation has driven Bitcoin’s rally past $100K in recent weeks.
⚠️ Warning of Mid-March Correction
Arthur Hayes, BitMEX co-founder, predicts a market correction in mid-March due to declining U.S. dollar liquidity. While current liquidity measures sustain Bitcoin's rally, their long-term impact remains uncertain.
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