Key Takeaways
- Bitcoin fell 5% from a record high of $102,000 amid stronger-than-expected US jobs data.
- The crypto market, which had gained 11% in early 2025, is now down more than 5%, with Ethereum, XRP, and Solana also seeing significant declines.
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Bitcoin has fallen more than 5% since hitting a high of more than $102,000 on Monday.
This 5% decline pushed Bitcoin to the $96.5K mark, and the move indicates that the asset is having trouble recovering, as it is still at this level hours after the first drop.
This marks a rocky start to 2025 as markets react to an increase in US job openings and the Federal Reserve's projected stance on interest rates.
The JOLTS report showed that job openings rose to 8.1 million in November, up from a revised 7.8 million in October.
The strong labor market is dampening hopes for monetary easing, signaling less urgency for rate cuts.
This aligns with the CME FedWatch tools casting of a 95% chance that the Federal Reserve will hold rates steady at its January 29 meeting.
Amidst this data, the crypto market took a downward turn, resulting in over $400 million in liquidation, according to Coinglass data. Of this, $275 million occurred within a four-hour window.
The decline spread across major digital assets, with Ethereum falling 6.4%, XRP falling 4.8%, Solana declining 5.7%, and Dogecoin sliding 6.5% in the past 24 hours.
The fastest decline was the Pudgy Penguins token, falling 12.3%, according to CoinGecko data.
The crypto market had gained more than 11% in the first week of 2025, but the latest downturn wiped out nearly half of those gains.
Traders are now monitoring how President Trump's pro-crypto stance could affect market sentiment, although the impact of possible regulatory changes remains uncertain.
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