Today, the cryptocurrency market took a noticeable dip following the release of strong U.S. employment data, heightening fears of potential delays in Federal Reserve interest rate cuts.
Impact of Employment Data on the Market
Bitcoin has lost over 10% of its value since the Federal Reserve's hawkish meeting on December 18. The jobs report released Friday showed the U.S. economy added 256,000 jobs in December, significantly beating economists’ estimate of 153,000. The unemployment rate also fell to 4.1% from 4.2%, underscoring the resilience of the labor market.
Analysts' Views on the Current Situation
Bryce Doty, portfolio manager at Sit Fixed Income Advisors, stated that the report will continue to drive higher yields and further postpone the next Federal Reserve rate cut. “We may not see another rate cut until next quarter.”
Bitcoin Risks and Forecasts
Yuya Hasegawa, a crypto analyst at Bitbank, noted that higher-than-expected employment and Purchasing Managers Index (PMI) data earlier this week were already weighing on Bitcoin. He suggested that Bitcoin’s performance heading into the weekend will depend on how much the employment report beats expectations. “If Friday’s data significantly exceeds market expectations, Bitcoin could be at risk of falling below $92,000 again,” Hasegawa said.
The market events wrap up another week filled with dynamic changes that continue to impact the cryptocurrency sector. Attention will be focused on the future developments around Federal Reserve rates and their influence on the crypto market.
