Bitcoin started the week with a decline, falling below $93,000 as major investment banks adjusted their predictions for Federal Reserve rate cuts following a surprising jobs report. The leading cryptocurrency dropped 1.6% on the day, prompting speculation about potential support levels around $92,000, which provided resistance since late November. Major cryptocurrencies such as XRP, ADA, and DOGE also experienced losses. The recent nonfarm payrolls report showed a significant increase of 256,000 jobs in December, exceeding expectations and lowering the jobless rate to 4.1%. In response, Goldman Sachs delayed its projections for interest rate cuts, now expecting only two cuts in 2025, while Bank of America warned of a possible rate hike due to changing economic indicators. These developments suggest that the Fed may favor a prolonged pause or even a tightening monetary policy in light of strong job growth and rising Treasury yields. The market anticipates further insights from upcoming inflation reports that could impact Fed policy decisions.

Source 🔗