Investing.com– Bitcoin saw slight gains on Friday after the December jobs report, but was set for steep losses this week as concerns increased over slower interest rate cuts by the U.S. United States and the potential sales of coins by the government have eroded the sentiment towards crypto.
Crypto markets also largely followed a decline in broader risk markets as traders pivoted to safe havens like gold and the dollar amid heightened economic uncertainty.
climbed 1.9% to $93,876.0 by 09:09 ET (14:09 GMT), after falling as low as $92,474.1 earlier in the day.
The broader crypto prices also saw a muted performance in tandem with Bitcoin.
Bitcoin heads for weekly losses
Bitcoin traded around 4.4% this week, its worst performance since late September.
In addition to broader risk sentiment, Bitcoin was also pressured by reports that the Justice Department had received court approval to sell approximately $6.5 billion worth of Bitcoin seized from the Silk Road black market.
While the DOJ sale represented increased selling pressure on Bitcoin, it also dashed hopes that incoming President Donald Trump would convert the government’s confiscated tokens into a strategic reserve.
Trump has promised to enact crypto-friendly regulations and has even floated the possibility of a strategic Bitcoin reserve.
But analysts have expressed some doubts about how to create the reserve, since Congress is unlikely to accept any additional fiscal spending on the government’s Bitcoin purchases.
However, optimism about Trump spurred strong gains in Bitcoin until the end of 2024, taking the coin to a record high of more than $108,000. Trump has also been seen appointing a host of crypto-friendly candidates to key regulatory roles.
December jobs beat past expectations, unemployment rate falls
The US labor market showed strong momentum in December, with job growth far exceeding economists’ expectations and the unemployment rate showing an unexpected drop.
The Bureau of Labor Statistics said on Friday that the economy added 256,000 jobs last month, well above the forecast of 160,000 and higher than the revised November figure of 212,000 previously reported like 227,000.
The unemployment rate fell to 4.1% in December, slightly better than the 4.2% expected and November’s 4.2%.
These robust jobs figures come after a series of recent economic reports prompted a sell-off across markets as investors adjusted their outlook on potential Federal Reserve cuts in 2025.
Crypto price today: slightly rising altcoins
The broader crypto prices followed Bitcoin’s slight gain as risk appetite remained limited in anticipation of the non-farm payrolls report.
The report comes just days after the minutes of the Federal Reserve’s December meeting reiterated the bank’s outlook for fewer interest rate cuts in 2025, which bodes poorly for risk-driven assets.
The world’s no.2 crypto added 0.6% to $3,259.77, while it rose 1.8% to $2,284.
and jumped between 1% and 5%, while among the meme tokens, it rose 2.8%.
Ambar Warrick contributed to this report.
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2025-01-10 14:17:00
