PakGazette– Bitcoin fell for a third straight day on Monday, as better-than-expected U.S. payrolls data stoked caution among traders, reinforcing the Federal Reserve’s view that payroll cuts will be eased. interest rates in 2025.
fell 0.3% to $94,268.7 at 01:12 a.m. (CET) (06:125 GMT).
Bitcoin prices fell sharply last week, having declined in six of the previous seven sessions, as potential token sales by the US government eroded sentiment towards the cryptocurrency.
U.S. rate jitters raise liquidity concerns
The strong US report released on Friday has supported the Federal Reserve’s forecast for fewer rate cuts this year. In December, the U.S. economy added 256,000 jobs, beating estimates of 153,000, and the unemployment rate fell to 4.1% from 4.2% in November.
This strong labor market performance suggests that the Federal Reserve could take a more cautious approach to monetary easing.
Higher interest rates can put downward pressure on Bitcoin and other cryptocurrencies, as they often lead to a stronger US dollar and reduced liquidity in financial markets.
Additionally, high Treasury yields have been associated with declines in the price of Bitcoin, with some analysts suggesting that sustained high yields could push Bitcoin’s value down to around $90,000.
Bitcoin pressured by government sales reports
Another factor influencing Bitcoin market dynamics is the potential for government sales of seized cryptocurrencies.
Last week, media reports emerged that the Justice Department had received court approval to sell around $6.5 billion in confiscated Bitcoin on the Silk Road black market.
The US government has previously liquidated Bitcoin assets acquired through law enforcement actions, and the possibility of future sales could introduce additional supply to the market, which could affect prices.
This is also likely to fly in the face of the idea of a strategic Bitcoin reserve under the Donald Trump administration, further weighing on the token.
Cryptocurrency price today: Most altcoins see steeper declines than Bitcoin
In the broader cryptocurrency market, Bitcoin’s performance continues to influence other digital assets.
The world’s No. 2 cryptocurrency fell 1.6% to $3,229.02.
Bucking the trend, the world’s No. 3 cryptocurrency rose 3.8% to $2.5139.
fell 1.3% and fell 4.8%, while it plummeted 6.2%. Among meme tokens, it lost 3.2%.
