Bitcoin fell 0.3% to $94,268.7 on Monday, marking its third consecutive decline as stronger-than-expected U.S. payroll data sparked caution among traders. The robust labor market supports the Federal Reserve’s outlook for fewer interest rate cuts in 2025, pressuring cryptocurrency markets.
In December, the U.S. economy added 256,000 jobs, exceeding expectations of 153,000, while unemployment fell to 4.1% from 4.2%. This suggests a less aggressive monetary easing approach, which could further strengthen the U.S. dollar. Higher interest rates and elevated Treasury yields typically reduce liquidity, contributing to Bitcoin's decline. Analysts warn prolonged high yields might push Bitcoin prices down to $90,000.
Reports of potential U.S. government Bitcoin sales have added to market concerns. Last week, media outlets reported the Department of Justice had court approval to sell $6.5 billion worth of Bitcoin seized from the Silk Road. Previous government Bitcoin liquidations have introduced additional supply, weighing on prices.
Broader cryptocurrency markets mirrored Bitcoin’s downturn. Ether dropped 1.6% to $3,229.02, while Solana fell 1.3%, and Polygon lost 4.8%. Meme coin Dogecoin slid 3.2%. However, XRP bucked the trend, rising 3.8% to $2.5139.
Concerns over Federal Reserve policies and potential government actions highlight ongoing volatility in cryptocurrency markets, with Bitcoin’s performance remaining a key influence on altcoin trends.


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