Bitcoin Dips Below $93,000 as Fed Rate Cut Expectations Shift
Bitcoin (BTC) opened the week with a decline, dropping below $93,000, a 1.6% decrease attributed to revised expectations for Federal Reserve rate cuts after a strong jobs report. Key points include:
- Support zone near $92,000 remains significant since late November.
- The CoinDesk 20 Index fell over 3%, with major cryptocurrencies like XRP, ADA, and DOGE experiencing larger losses.
- S&P 500 futures traded down 0.3%, continuing Friday's 1.5% drop.
- The dollar index (DXY) approached 110, supported by rising Treasury yields.
- December nonfarm payrolls increased by 256,000, exceeding expectations of 160,000.
- Jobless rate decreased to 4.1%; average hourly earnings rose by 0.3% month-on-month.
- Goldman Sachs postponed the next interest rate cut to June from March, suggesting only two cuts in 2025.
- Bank of America anticipates an extended pause in rate cuts, with potential risks for a hike.
- December consumer price index report releases on January 15 may impact Fed's future decisions.
Overall, market sentiment reflects uncertainty regarding the Fed's monetary policy direction amid strong labor market data.