While the US stock market was closed on Thursday to mourn former President Jimmy Carter, the crypto market is open 24/7 and is bearing the brunt of the tension ahead of tomorrow's December jobs report. .
In late afternoon action, Bitcoin (BTC) price returned to its lowest level in more than a month, barely holding on to $91,000, down about 3% over the past 24 hours.
broader CoinDesk 20 Index has fallen as well, but notable underperforming stocks include Solana (SOL) and Chainlink (LINK), both of which are down by double-digit percentages.
The continued decline in cryptocurrencies comes on the heels of a massive rally in the fourth quarter of 2024, fueled by President Donald Trump's victory in November and hopes for a friendlier regulatory environment in Washington, D.C. .
Another pillar supporting cryptocurrencies is easy monetary policy, with the US Federal Reserve cutting overnight interest rates by 100 basis points since September. But that leg was cut after a series of economic reports showed the economy and inflation were doing much better than markets and central banks expected. As a result, long-term yields have risen by more than 100 basis points since the Fed began lowering short-term rates.
Today's selloff comes ahead of Friday morning's December jobs report. Another long-term strong economic indicator could mean that markets not only drop the idea of a rate cut in 2025, but perhaps start pricing in the need for a rate hike in the coming months.
How far can Bitcoin fall?
“BTC, ETH, and SOL are currently revisiting the December 5th lows and people are starting to accept the fact that these levels may not be sustainable,” said popular trader Eugene Ng.・Ah Shio said. ×post. “This is when most people start to panic.”
He said that if the $90,000 level declines, Bitcoin's next support level will be $85,000.
Joe McCann, founder of venture capital fund Asymmetric Capital, said: Posted If Bitcoin fails to sustain the $90,000 line, BTC could target $75,000.
Famous Trader Skew said It is thought that Thursday's price decline may have been caused by headlines about additional Silk Road-related Bitcoin sales. In a separate post analyzing Binance order book data, Skew said bid liquidity is strong and outpacing sellers, with people ready to buy up Bitcoin below the current price.
“What's notable here is the lack of volatility behind the price here. Part of the reason for that is that the sell flow isn't as strong, and part of the reason is that the bid liquidity is outweighing the current selling pressure. Quantity,” Skew said. “This doesn't seem so bad.”
