The post Bitcoin Plummets 4.8% Amidst U.S. Employment Data Shock, Signaling Market Volatility appeared on BitcoinEthereumNews.com.

On January 8th, COINOTAG News reported that U.S. employment figures surpassed projections, accompanied by a **spike in service sector inflation**. These developments have notably tempered speculation regarding a potential **rate cut by the Federal Reserve**. The market’s outlook has adjusted to anticipate only a singular reduction in rates this year, a significant shift from the previously expected two reductions noted in the Fed’s dot plot. The immediate market reaction was pronounced, with all three major U.S. stock indices posting declines. The **S&P 500** fell by 1.11%, while the **Dow Jones** decreased by 0.42%. Tech giants faced substantial pressure, with **Nvidia** sliding by 6.22% after reaching an all-time high, and **Tesla** dropping 4%. Concurrently, crypto-related equities like **Coinbase** and **MicroStrategy** witnessed substantial **losses**, declining by over 8% and 9%, respectively. The crypto space mirrored these trends, with **Bitcoin** plummeting from above $100,000 to approximately $96,181, marking a decline of more than 4.8% within 24 hours. Although Bitcoin made minor gains, hovering just above **$97,000**, the overall sentiment remained bearish, compounded by many altcoins decreasing by over 10%. Additionally, the **Bitcoin spot ETF** experienced outflows totaling $544 million, signaling a potential shift in investor confidence. The robust U.S. economic indicators overshadowed initial U.S. dollar weakness, with the **dollar index** recovering by 0.4%. Oil prices also saw an uptick, fueled by output reductions from leading producers. However, the simultaneous increase in the dollar and U.S. yield bonds limited gains in gold, despite spot gold reaching a daily high. Analysts now suggest that the Fed’s pathway is more uncertain, with a heightened probability of retaining current rates into July, leaving market participants navigating a landscape fraught with volatility risks. Source: https://en.coinotag.com/breakingnews/bitcoin-plummets-4-8-amidst-u-s-employment-data-shock-signaling-market-volatility/

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Filed under: News - @ January 8, 2025 3:17 am