Bitcoin has “fall off the horse” to a low of $91,430 last week, extending the correction after reaching a high of $108,100 on December 17, 2024. The digital currency continued to fall this past Monday and is now down more than 15% due to increased market attention, inspired by US Treasury yields had risen sharply and net withdrawals from spot Bitcoin ETFs continued. Surprisingly, ETFs have seen 7 days of pullbacks over the past 12 trading days, with $718 million withdrawn in just two days, a sharp turnaround from early January's cash flow of nearly $2 billion.
US Treasury bond yields have risen reached its peak over 14 months it was 4.79%, drawing institutional money flow away from riskier assets such as Bitcoin. Historically, BTC reacts quickly to spikes in yield, but this time the impact is exacerbated by news The US Department of Justice plans to liquidate $6.5 billion in seized Bitcoin.
Despite macroeconomic pressures, Bitcoin continues to emerge stability surprisingly – still up 42% since the US election – outperforming the stock market, which has lost all of its post-election gains. However, with the Federal Reserve signaling fewer interest rate cuts and tightening financial conditions, Bitcoin is likely to be more vulnerable in the short term. However, there is hope that the new administration of the newly elected President may introduce regulations that support cryptocurrencies, thus helping to limit further losses and keep BTC in a strong position in the long run.
The latest economic numbers show that the US economy ended 2024 with a resilient labor market and unexpected growth in the services sector. In December, the labor market was create more 256,000 nonfarm jobs, beating forecasts and marking the strongest monthly growth since March Core industries such as healthcare, retail and entertainment are leading the trend, with job losses down 4.1 % and wages have increased by 3.9% over the same period last year. This job growth is strongalong with steady wage growth, underpinned by strong consumer spending, the cornerstone of the US economy. A resilient labor market has also eased pressure on the Federal Reserve to continue cutting interest rates, delaying any potential reduction until mid-2025.
The services sector also contributed to this positive growth trend, with the Institute for Supply Management (ISM). report The Purchasing Managers' Index (PMI) increased to 54.1 in December This growth was driven by increased output and new orders, indicating continued expansion in key industries such as finance, education and hospitality. However, employment in the service sector slightly reducedpresents a complex labor picture with unique challenges by industry.
In the latest crypto news, comes the UK Treasury's decision to exempt cryptocurrency funds from common investment scheme (CIS) rules. clarity and flexibility for blockchain businesses, encouraging innovation and strengthening the UK's position as a crypto-friendly jurisdiction. Meanwhile, in Hong Kong, there is the Hong Kong Monetary Authority discussion The Custodial Incubator for Distributed Ledger Technology provides a structured environment for banks to adopt blockchain solutions such as encrypted deposits while managing the associated risks, setting a global demand for a balance between innovation and management
However, there is still some volatility in the cryptocurrency market following the news that the Ministry of Justice has… authorized liquidation 6.5 billion USD in Bitcoin seized from the Silk Road black market. News of this sale contributed to a 7.2% drop in the price of Bitcoin, raising market concerns about potential volatility. The event partly challenges the pro-cryptocurrency sentiment that has fueled Bitcoin's recent all-time high rally and once again creates regulatory uncertainty, highlighting the strengthening of the inter- conscious operation between policy decisions and market psychology.
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