According to Zhitong Finance APP, due to last Friday's employment report being hotter than expected, further supporting the view that the Federal Reserve will reduce the rate of interest rate cuts, negative sentiment persisted throughout the market, with Bitcoin briefly falling to its lowest level since late November, reported at $90,313.86.
As of the time of publication, Bitcoin has dropped 3.8% to $914,000. On the same day, other risk assets, including U.S. stock index futures, also faced pressure.
Samer Hasn, a senior market analyst at XS.com, stated, &#34;The continued decline of Bitcoin is due to a lack of catalytic factors and a low-risk appetite atmosphere. The diminished appeal of risk assets has led to a continued decline in the stock market, which in turn has driven the overall trend of the cryptocurrency market.&#34;
The latest U.S. employment report released last Friday was hotter than expected. The U.S. Bureau of Labor Statistics reported that non-farm employment in the U.S. increased by 256,000 in December 2024, easily surpassing the general expectation of 157,000. Meanwhile, the unemployment rate fell to 4.1%, lower than the expected 4.2%.
This explosive report also prompted Goldman Sachs to predict that there will only be two more rate cuts this year. Bank of America went a step further, believing that there will be no more rate cuts this year at all, and stated that the risk of policymakers raising interest rates is even greater at present.
So far, entering the new year, Bitcoin seems to have taken a breather, only reaching the $100,000 mark twice.
Cryptocurrency-related stocks in the U.S. pre-market trading fell across the board, with MARA Holdings (MARA.US) down 4.10%, Riot Platforms (RIOT.US) down 4.33%, MicroStrategy (MSTR.US) down 4.25%, HIVE Digital (HIVE.US) down 3.0%, CleanSpark (CLSK.US) down 4.6%, Bit Digital (BTBT.US) down 5.1%, Bitfarms (BITF.US) down 4.4%, and Coinbase Global (COIN.US) down 4.1%

Due to last Friday's employment report exceeding expectations, negative market sentiment continued, with Bitcoin falling to its lowest level since November of last year, reported at $90,313.86, a decline of 3.8%. Analysts pointed out that the drop in Bitcoin lacked catalytic factors, and the appeal of risk assets weakened, leading to an overall decline in the stock and cryptocurrency markets. The U.S. non-farm payrolls increased by 256,000, and the unemployment rate fell to 4.1%. Goldman Sachs and Bank of America hold a cautious outlook on the prospect of interest rate cuts

- The recent U.S. employment report exceeded expectations, supporting the view that the Federal Reserve may reduce interest rate cuts, leading to negative market sentiment.  
- Bitcoin fell to its lowest level since late November, trading at $90,313.86, down 3.8%, while other risk assets, including U.S. stock index futures, also faced pressure.  
- Analysts attribute Bitcoin's decline to a lack of catalysts and low risk appetite, with significant drops in cryptocurrency-related stocks observed in pre-market trading.  

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Investors reassess interest rate cut bets, Bitcoin falls to its lowest level since November last year