Cryptocurrency markets took a hit today after strong U.S. employment data weighed on digital asset prices, stoking fears that the Federal Reserve may delay cutting interest rates.
Bitcoin has lost over 10% of its value since the Fed’s hawkish meeting on December 18.
The jobs report released Friday showed the U.S. economy added 256,000 jobs in December, significantly beating economists’ estimate of 153,000. The unemployment rate also fell to 4.1% from 4.2% in November, underscoring the resilience of the labor market.
“This report will continue to drive higher yields and further postpone the next Fed rate cut,” said Bryce Doty, portfolio manager at Sit Fixed Income Advisors. “We may not see another rate cut until next quarter.”
Yuya Hasegawa, a crypto analyst at Bitbank, noted that higher-than-expected employment and Purchasing Managers Index (PMI) data earlier this week were already weighing on Bitcoin. He suggested that Bitcoin’s performance heading into the weekend will depend on how much the employment report beats expectations. “If Friday’s data significantly exceeds market expectations, Bitcoin could be at risk of falling below $92,000 again,” Hasegawa said.
*This is not investment advice.
