Bitcoin Slides Below $92K as Markets Brace for December Jobs Report

Crypto Market Sees Correction as Leading Digital Currency Faces Resistance Near All-Time Highs

  • U.S. stock markets paused for President Carter’s memorial while cryptocurrency markets faced downward pressure.
  • Bitcoin Price dropped to $91,000, marking a 3% decline in 24 hours.
  • Solana and ChainLink experienced double-digit percentage losses.
  • Recent economic strength and inflation data have pushed long-term interest rates up by over 100 basis points.
  • December employment report could influence Federal Reserve’s future rate decisions.

Cryptocurrency Markets Face Pressure Amid Market Closure

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While U.S. stock exchanges remained closed Thursday to honor former President Jimmy Carter, cryptocurrency markets experienced significant selling pressure, with Bitcoin falling to $91,000, its lowest level in over a month.

Digital Asset Performance

The CoinDesk 20 Index recorded similar losses around 3%, with some assets showing steeper declines. Solana and Chainlink emerged as notable underperformers, each recording losses exceeding 10%. This decline marks a sharp reversal from the asset class’s strong performance in late 2023.

Monetary Policy Impact

The Federal Reserve’s previous 100-basis-point reduction in overnight interest rates since September 2023 had supported digital asset prices. However, recent economic indicators showing unexpected strength and persistent inflation have reversed this trend. Long-term interest rates have risen by more than 100 basis points since the Fed began its rate reduction campaign.

Employment Data Anticipation

Market participants await Friday’s December employment report with heightened attention. A stronger-than-expected jobs report could lead markets to revise their expectations for 2025, potentially shifting from anticipated rate cuts to preparing for rate increases. This uncertainty has contributed to the current selling pressure in cryptocurrency markets, which operate continuously unlike traditional financial markets.

The fourth quarter 2023 rally, initially sparked by Donald Trump‘s November victory and expectations of more favorable regulatory policies from Washington D.C., has now encountered resistance as monetary policy concerns take center stage.

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