US stock markets were closed on Thursday in memory of former President Jimmy Carter, but cryptocurrencies run 24/7 and bear the brunt of any jitters ahead of the US jobs report. December tomorrow.
In late afternoon action, the price of bitcoin (BTC) had returned to levels not seen in over a month, holding just above $91,000 and down roughly 3% over the past 24 hours.
The broader CoinDesk 20 index is similarly down, but notable underperformers include solana (SOL) and chainlink (LINK), both with double-digit percentages.
The continued cryptocurrency sell-off comes after a major rally in the fourth quarter of 2024 driven by Donald Trump’s victory in November and hopes for a friendlier regulatory environment from Washington DC.
Another leg on the stool propping up cryptocurrencies was looser monetary policy, as the US Federal Reserve cut its overnight interest rate by 100 basis points since September. However, that leg was cut after a series of economic reports showed that the economy and inflation have been much stronger than markets and the central bank expected. That, in turn, has lifted long-term interest rate yields by more than 100 basis points since the Federal Reserve began cutting short-term rates.
Today’s sales come ahead of Friday morning’s December jobs report. Another stronger economic data in the long series could see markets not only dismiss the idea of any rate cuts in 2025, but perhaps begin to price in the need for rate increases in the coming months.
