Bitcoin Pulls Back to $68,000 After Key U.S. Jobs Data Is Released
Meanwhile, Ethereum (ETH) is correcting by 1.5% to $1,973, and major altcoins are following the same trend.
Quick overview
- Investors are worried about a potential 'crypto winter' as Bitcoin experiences a modest decline to $67,924.
- Ethereum and major altcoins are also seeing corrections, with Ethereum down 1.5% and Solana down 2.5%.
- Recent U.S. employment data indicates economic stability, which may influence the Federal Reserve's approach to interest rate cuts.
- Favorable economic reports could support a gradual approach to rate cuts, potentially benefiting Bitcoin in the long run.
As investors grow increasingly concerned about the risk of a new “crypto winter,” a series of U.S. economic reports could help drive a rebound in the world’s leading cryptocurrency.
The crypto market is posting broad-based declines. Bitcoin (BTC) is down 0.7% at $67,924, a modest pullback after briefly touching $70,000 on Tuesday.
Meanwhile, Ethereum (ETH) is correcting by 1.5% to $1,973, and major altcoins are following the same trend: Solana (SOL) is down 2.5%, while Ripple (XRP) slips 0.4%.
Crypto Markets Focus on U.S. Jobs Data and the Fed’s Next Move
Following Bitcoin’s sharp sell-off — with prices plunging nearly 40% in just eight months — new U.S. employment data showed continued labor market resilience. Payroll growth accelerated in January, while the unemployment rate fell to 4.3%, reinforcing the picture of economic stability.
Markets have scaled back expectations for aggressive rate cuts, although they still anticipate a first 25-basis-point cut in June, according to the CME Group’s FedWatch tool.
Attention now turns to the upcoming U.S. Consumer Price Index (CPI) report, due Friday, which could further shape expectations for monetary policy.
In this context, favorable data could support a more cautious and gradual approach by the Federal Reserve (Fed) toward interest rate cuts, at least until June, following three consecutive reductions. While Bitcoin typically benefits from lower interest rates — which boost risk appetite — its current fragility appears to stem mainly from tight liquidity conditions, weakening institutional participation, and fading speculative interest.
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