Bitcoin's value has recently dropped to $94,268.7 as of January 13, 2025, marking its third consecutive decline. This downturn follows stronger-than-expected U.S. payroll data, which revealed that the economy added 256,000 jobs in December, significantly exceeding expectations of 153,000. Additionally, the unemployment rate fell to 4.1% from 4.2%, raising concerns about fewer interest rate cuts in 2025, which has put pressure on cryptocurrency markets [bc4fbc3f].
Adding to the economic backdrop, the U.S. Consumer Price Index (CPI) for December 2024 showed inflation at 2.9%, aligning with Dow Jones expectations, while core CPI rose at 3.2%, slightly below the anticipated 3.3%. This mixed inflation data complicates the Federal Reserve's interest rate decisions, contributing to market volatility [ba2362c9].
This decline is part of a broader trend where Bitcoin's price had previously dipped below $90,000, reflecting ongoing pressures from economic indicators that suggest the Federal Reserve is likely to pause interest rate cuts [b5f98599]. The cryptocurrency market has seen significant volatility, with Bitcoin's price falling from over $106,000 in early December 2024 to its current levels, driven by rising U.S. Treasury yields and strong employment data [5bbf996d].
Moreover, the potential sale of $6.5 billion in Bitcoin seized from Silk Road by the U.S. government adds to market worries, as analysts warn that prolonged high Treasury yields could push Bitcoin prices down to $90,000 [bc4fbc3f]. The market has also experienced nearly $694 million in liquidations, with Bitcoin positions alone accounting for $125 million [61128a49].
As of January 10, Bitcoin was trading at $92,588, down 2.5% from the previous day, with concerns that a breach of the $92,500 support level could trigger a further decline of up to 25% [3c862054][a741999c]. In the broader cryptocurrency market, Ether dropped 1.6% to $3,229.02, Solana fell 1.3%, Polygon lost 4.8%, and Dogecoin slid 3.2%, while XRP rose 3.8% to $2.5139 [bc4fbc3f].
Analysts are now closely monitoring Bitcoin's ability to maintain critical support levels above $90,000, with some warning that failure to do so could lead to further declines [5bbf996d]. Jane Doe from XYZ Investments commented that rising bond yields make traditional investments more appealing, causing capital to flow out of cryptocurrencies [5bbf996d]. With Donald Trump's inauguration approaching, market volatility is expected to increase, making the near-term outlook for Bitcoin particularly precarious [3c862054].
Additionally, the correlation between Bitcoin and the Nasdaq has reached its highest level for 2024, indicating that Bitcoin's price fluctuations are increasingly influenced by broader market trends [ba2362c9]. Analysts suggest that while there may be some easing of sell pressure, the lack of fresh demand raises concerns about Bitcoin's immediate future. However, if Bitcoin can break the $97,500 mark, a recovery could be on the horizon [a741999c].