The crypto market has witnessed a significant price drop on January 7 amid challenging economic data. Bitcoin's price plummeted, affecting major cryptocurrencies and causing large-scale liquidations.
Crypto Market Correction
As of the time of publication, Bitcoin's price declined by more than 4% over the past 24 hours, hovering around $97,000. Ethereum also experienced an 8% dip, Solana dropped more than 7%, and XRP around 5%. Avalanche, Dogecoin, and Chainlink fell more than 9% each. Data from CoinGlass showed $388 million worth of positions were liquidated, with long positions accounting for $212 million.
Impact of US Job Openings Data
The U.S. Bureau of Labor Statistics released data showing 8.1 million job openings at the end of November, the highest level since May 2023. These figures influenced the drop in crypto prices. The 10-year U.S. Treasury yield rose six basis points to 4.69%.
Market Reaction to Economic Indicators
The drop in crypto prices also occurred amid an unexpected rise in Treasury yields and faster-than-expected growth in the U.S. service sector in December. Although rates were cut, the Federal Reserve indicated fewer reductions might occur in 2025.
The crypto market downturn is attributed to multiple factors, including economic data and changing Federal Reserve rate expectations, highlighting the intricate interplay between cryptocurrencies and broader economic trends.
