Pakinomist– Bitcoin edged lower on Monday, falling for a third straight day as stronger-than-expected U.S. payrolls data sparked caution among traders, reinforcing the Federal Reserve’s view of fewer rate cuts in 2025.
fell 0.3% to $94,268.7 by 01:12 ET (06125 GMT).
Bitcoin prices fell sharply last week after falling six out of the previous seven sessions as potential US government token sales eroded sentiment towards the crypto.
US interest rate turmoil raises liquidity concerns
Robust US data released on Friday has supported the Federal Reserve’s forecast of fewer interest rate cuts this year. In December, the US economy added 256,000 jobs, beating forecasts for 153,000, and the unemployment rate fell to 4.1% from 4.2% in November.
These strong labor market results suggest that the Fed may take a more cautious approach to monetary policy easing.
Higher interest rates can put downward pressure on Bitcoin and other cryptocurrencies, as they often lead to a stronger US dollar and reduced liquidity in financial markets.
In addition, increased government interest rates have been linked to falls in Bitcoin’s price, with some analysts suggesting that sustained high interest rates could push Bitcoin’s value down to around $90,000.
Bitcoin pressured by reports of government sales
Another factor affecting Bitcoin’s market dynamics is the potential for public sales of seized cryptocurrencies.
Last week, media reports surfaced saying the Justice Department had received court approval to sell about $6.5 billion worth of Bitcoin confiscated from Silk Road’s black market.
The US government has previously liquidated Bitcoin assets acquired through law enforcement actions, and the possibility of future sales could introduce additional supply to the market, potentially affecting prices.
This also likely opposes the idea of a strategic Bitcoin reserve under the Donald Trump administration, further weighing down the token.
Crypto price today: most altcoins register sharper declines than Bitcoin
In the broader cryptocurrency market, Bitcoin’s performance continues to influence other digital assets.
World no. 2 crypto fell 1.6% to $3,229.02.
Bucking the trend, world no. 3 crypto up 3.8% to $2.5139.
fell 1.3% and fell 4.8%, while fell 6.2%. Among meme tokens, 3.2% lost.
