The post Bitcoin Falls Below $95K Amid Strengthening U.S. Economic Indicators, $555M Liquidated appeared on BitcoinEthereumNews.com.

The cryptocurrency market experienced a sharp downturn as Bitcoin dropped 3% to $93,471 on Thursday, losing the crucial $100,000 threshold. The decline came in the wake of strong U.S. economic data that has reignited inflation fears, potentially delaying Federal Reserve plans to ease monetary policy. Making the siituation worse, The United States Department of Justice (DOJ) has received approval to sell 69,370 Bitcoin, valued at approximately $6.5 billion, seized from the Silk Road darknet marketplace. This decision marks the culmination of a contentious legal battle. Market participants are jumpy, if the sale goes ahead it could suppress the Bitcoin price, however some commentators suggest the sell order could be absorbed within one week. Economic Data Sparks Market Reaction The broader labor market saw an unexpected surge in jobs in November, indicating sustained demand, the Labor Department reported. In a separate report, the U.S. services sector grew faster in December, fueled by input prices rising to the highest in nearly two years. Source: GreeksLive via X These reports fueled speculation that the Federal Reserve might maintain higher interest rates for longer to curb potential inflationary pressures. Benchmark 10-year Treasury yields rose to 4.699%, their highest point since April 2024, reflecting investors’ expectations of tighter monetary policy. “Stronger economic indicators have shifted market sentiment, with riskier assets like cryptocurrencies bearing the brunt,” said Ryan Lee, chief analyst at Bitget Research. Crypto Market Sees Broad Declines Bitcoin’s 5% drop to $96,602 on Wednesday led a broader crypto market sell-off, with Ethereum tumbling 8.4% to $3,373, XRP declining 3% to $2.33, and Solana losing 8% to settle at $199.36. By late Tuesday, the total cryptocurrency market capitalization fell 7.2% to $3.5 trillion. Market analyst Ryan Lee noted that rising interest rates tend to hurt high-risk assets like cryptocurrencies as investors shift their focus to…

---

Filed under: News - @ January 10, 2025 4:24 pm