Bitcoin dropped to a 5-week low on January 13, 2025, falling below $90,000 amid increasing concerns over the Federal Reserve's monetary policy. The cryptocurrency, which was trading above $108,000 recently, faced downward pressure as speculation grew that the Fed would not implement any rate cuts this year. This comes after the latest employment data revealed that U.S. employers added 256,000 jobs in December, significantly outpacing expectations. BofA Global Research noted that the strong labor market suggests an end to the Fed's easing cycle. Market participants now estimate a 30% chance of the Fed maintaining rates through December, up from 16% a week earlier. Analysts emphasize that lower interest rates generally support risk assets, including cryptocurrencies. In the backdrop, traders are also considering regulatory shifts under the incoming President Donald Trump, who has promised a more supportive stance towards the cryptocurrency sector. However, rising bond yields and macroeconomic anxieties continue to influence Bitcoin's value negatively.

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