Crypto markets stumbled with bitcoin (BTC) missing the $100,000 level on Tuesday morning in the US, as two stronger-than-expected US economic data poured cold water on the assets’ brilliant early-year momentum. digital.
The Bureau of Labor Statistics’ JOLTS job openings for November unexpectedly rose to 8.1 million from 7.8 million the previous month, easily beating analyst estimates of a decline to 7.7 million.
Released at the same time, the ISM Services Purchasing Managers’ Index, a monthly indicator of the level of economic activity in the services sector, hit 54.1 in December, beating expectations of 53.3 and well above 52. ,November 1. The Prices Paid subindex was red hot at 64.4, up from 57.5 and 58.2 expected the previous month.
While neither report tends to be a big market mover, combined they further rattled an already nervous bond market, lifting the 10-year U.S. Treasury yield by another five basis points to 4.68% and within a few ticks of several years. maximums. The move sent US stocks tumbling, with the Nasdaq now losing more than 1% in late morning action and the S&P 500 falling 0.4%.
BTC, which was trading just below $101,000 during European afternoon hours, fell to $97,800 after the data, giving up yesterday’s gains and down 4% in the last 24 hours. Major altcoins fell further: Ethereum’s ether (ETH) and Solana’s SOL lost between 6% and 7%, while Avalanche’s AVAX and Chainlink’s LINK fell between 8% and 9%.
The rapid drop in prices wiped out nearly $300 million of long positions in derivatives markets that were betting on rising prices, according to CoinGlass, marking the first major increase in leverage of the year.
The strong data also has investors further reducing their expectations for rate cuts in 2025.
While market participants had already ruled out any chance of a rate cut at the Federal Reserve’s January meeting, they now see just a 37% chance of an easing measure at the central bank’s March meeting, versus almost 50% just a week ago, according to the CME FedWatch tool. Looking even further out, the odds of a rate cut in May are also now well below 50%. Looking at full year 2025, Ballinger Group’s Kyle Chapman noted that investors are now only pricing in roughly a 25 basis point rate cut for the full year.
