Investing.com– Bitcoin fell on Monday, falling for a third straight day as stronger-than-expected U.S. payrolls data prompted caution among traders, confirming the Federal Reserve’s view of a smaller interest rate cut in 2025.
down 0.3% to $94,268.7 by 01:12 ET (06125 GMT).
Bitcoin prices fell sharply last week, after falling in six of the previous seven sessions as a potential token sale by the US government dampened sentiment for the cryptocurrency.
Nervous rates in the US are raising liquidity concerns
A robust US report on Friday supports the Federal Reserve’s forecast of a smaller rate cut this year. In December, the US economy added 256,000 jobs, beating forecasts of 153,000, and the unemployment rate fell to 4.1% from 4.2% in November.
This strong labor market performance suggests that the Fed may adopt a more cautious approach to monetary easing.
Higher interest rates can put downward pressure on Bitcoin and other cryptocurrencies as they often lead to a stronger US dollar and reduced liquidity in financial markets.
In addition, elevated Treasury yields have been linked to a fall in the price of Bitcoin, with some analysts suggesting that sustained high yields could push Bitcoin’s value to around $90,000.
Bitcoin under pressure from government sales report
Another factor affecting the market dynamics of Bitcoin is the possibility of government sales of confiscated cryptocurrencies.
Last week, media reports emerged stating that the Department of Justice had received court approval to sell approximately $6.5 billion worth of Bitcoins seized from the Silk Road black market.
The US government has previously liquidated bitcoin assets acquired through law enforcement actions, and the possibility of future sales could introduce additional supply into the market, potentially impacting prices.
This also likely goes against the idea of a strategic Bitcoin reserve under the Donald Trump administration, further weighing on the token.
Crypto price today: Most altcoins are seeing sharper declines than Bitcoin
In the broader cryptocurrency market, Bitcoin’s performance continues to influence other digital assets.
The world’s No. 2 cryptocurrency fell 1.6% to $3,229.02.
Bucking the trend, the world’s No. 3 cryptocurrency rose 3.8% to $2.5139.
fell 1.3%, fell 4.8%, while fell 6.2%. Among meme tokens, it lost 3.2%.
