• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Bitcoin's Decline and U.S. Economic Data: What's Happening?

user avatar

by Giorgi Kostiuk

6 months ago


Bitcoin's value took a significant dip on Tuesday due to strong U.S. economic indicators, causing a shift in market sentiment.

What Economic Reports Impacted Bitcoin?

The U.S. Labor Department disclosed a Job Openings and Labor Turnover Survey (JOLTS) revealing 8.1 million job openings for November, surpassing the expected 7.7 million. Additionally, the ISM Services Purchasing Managers Index (PMI) registered at 54.1 for December, exceeding predictions of 53.3, indicating a robust economy that caught many off guard.

How Much Value Did Traders Lose?

This abrupt decline in Bitcoin’s price resulted in the liquidation of over $600 million in long positions within a single day, while short positions experienced liquidations exceeding $60 million. The total liquidation reached nearly $700 million, marking one of the most significant upheavals in the cryptocurrency space for the year.

Rate Expectations and Market Reactions

The strong economic performance has tempered the expectations for immediate interest rate cuts by the Federal Reserve. Data from the CME FedWatch tool indicates that the chances of a rate cut in March have dropped to 37%, while predictions for May have fallen below 50%. Major market players are now anticipating only one rate cut in 2025, which they project will be limited to just 25 basis points.

The ongoing turbulence in the cryptocurrency market is likely to continue as investors respond to evolving U.S. economic conditions and interest rate expectations, keeping Bitcoin under close scrutiny for the remainder of the year.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Bullish, the Crypto Exchange Backed by Peter Thiel, Prepares for IPO

chest

Bullish has filed for IPO, seeking to enter the public market and compete with major players.

user avatarGiorgi Kostiuk

USDC Use on Stellar and Its Impact on XLM Value

chest

Statistics show a rise in USDC transactions on Stellar, indicating growing utility that fuels speculation on XLM prices.

user avatarGiorgi Kostiuk

Litecoin Records New Open Interest at $761 Million. Is LTC Heading to $120?

chest

Litecoin has reached a new record open interest of $761 million, and 66.3% of addresses are in profit, raising hopes for a price increase to $120.

user avatarGiorgi Kostiuk

World Liberty Announces WLFI Token Launch Valued at $16 Billion

chest

WLFI token by World Liberty plans to debut with a $16 billion valuation, with significant backing from DT Marks DEFI LLC.

user avatarGiorgi Kostiuk

Impact of GENIUS Act: Trump Establishes Federal Stablecoin Guidelines

chest

President Trump has signed the GENIUS Act, establishing federal regulations for stablecoins and impacting the U.S. crypto landscape.

user avatarGiorgi Kostiuk

New Opportunities in the Meme Cryptocurrency Market: Troller Cat Gaining Popularity

chest

Exploring the rise of Troller Cat amid shifts in meme cryptocurrencies and the current status of Shiba Inu and Pepe.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.