Investing.com– Bitcoin edged lower on Monday, falling for the third straight day as stronger-than-expected U.S. jobs data fueled traders’ caution, strengthening Federal Reserve sentiment according to which there would be fewer interest rate cuts in 2025.
fell 0.3% to $94,268.7 at 1:12 a.m. ET (06:125 GMT).
Bitcoin prices fell sharply last week, after declining six of the previous seven sessions, as potential token sales by the US government eroded sentiment towards the crypto.
Nervousness in US rates raises liquidity concerns
The U.S. strength released Friday supported the Federal Reserve’s forecast that there would be fewer rate cuts this year. In December, the U.S. economy added 256,000 jobs, beating forecasts of 153,000, and the unemployment rate fell to 4.1% from 4.2% in November.
This strong labor market performance suggests the Fed may be taking a more cautious approach to monetary easing.
Higher interest rates can put downward pressure on Bitcoin and other cryptocurrencies, as they often lead to a stronger U.S. dollar and reduced liquidity in financial markets.
Additionally, high Treasury yields have been associated with a decline in the price of Bitcoin, with some analysts suggesting that sustained high yields could push Bitcoin’s value down to around $90,000.
Bitcoin put under pressure by reports of government sale
Another factor influencing Bitcoin market dynamics is the potential for government sales of seized cryptocurrencies.
Last week, media reported that the Justice Department received court approval to sell approximately $6.5 billion in confiscated Bitcoin on the Silk Road black market.
The US government has already liquidated Bitcoin assets acquired through law enforcement actions, and the possibility of future sales could introduce additional supply to the market, which could impact prices.
This likely also clashes with the idea of ​​a strategic Bitcoin reserve under Donald Trump’s administration, further weighing on the token.
Crypto price today: Most altcoins see steeper declines than Bitcoin
In the broader cryptocurrency market, Bitcoin’s performance continues to influence other digital assets.
The world’s No. 2 crypto fell 1.6% to $3,229.02.
Bucking the trend, the world’s No. 3 crypto rose 3.8% to $2.5139.
fell 1.3% and 4.8%, while collapsing 6.2%. Among meme tokens, lost 3.2%.
