Bitcoin price was down by 5% and trading at approximately $97,000 after the U.S. released  Job Openings and Labour Turnover Survey (JOLTS) data showing more job openings than anticipated. According to this report, hiring increased, reaching 8.1 million in November from an upward revised 7.8 million in October.

The strong labor number data have ended the discussion of monetary easing; there is no indication that the Federal Reserve is keen on cutting interest rates. The CME FedWatch tool predicts a 95% chance that the Fed will maintain its current rate at its upcoming meeting on January 29, 2025.

TLDR on why the market is dipping:

US data came in hot, causing a bond yield spike.

ISM index higher than expected
JOLTS job openings increased

We’re in the “good data is bad data” phase of the market for risk assets ahead of FOMC in 2 weeks.

— Miles Deutscher (@milesdeutscher) January 7, 2025

This economic data had a direct and defining effect on the cryptocurrency market, which extended across every aspect. Bitcoin has, in the past, touched $102,000 intraday, but the fall has made investors worried about the new gains.

Since the year began, the market had a very good run in the first week of the year to early 2025, when Bitcoin went up more than 11%. However, this latest correction has brought almost all these gains to nearly half, and the traders have their eyes on more drops.

Over $30M in Bitcoin long positions liquidated in an hour

Apart from the price decline, Bitcoin longs worth more than $30 million were wiped out in a single hour due to such fluctuation. According to rates, competing instances of quick liquidation demonstrate a high degree of susceptibility in leveraged trading techniques in the cryptocurrency market.

These updates come amid recent BTC whale activity, with 3,038 BTC ($286M) moved to Kraken since December 20. This includes 778 BTC ($72M) recently moved. This has fueled concerns of selling pressure, pushing Bitcoin to $92,000. Analysts warn RSI levels signal potential drops to $85,000-$90,000, heightening market uncertainty.

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Experts are warning that this could lead to a retest of this level if BTC cannot hold the current support. The recent support is around $92,000. Other analysts have proposed that breaking this level may mean the current bearish head-and-shoulders shape toward deeper dips to $80k. Furthermore, current trading conditions are somewhat unpredictable since traders factor in macroeconomic criteria besides technicalities.

Nevertheless, there is still hope—or at least some of the market participants still see one. This political and social betting on Donald Trump’s upcoming inauguration and his pro-crypto stance signaled the expectations of better regulation.

Bitcoin Price Action Update

The macro-environment may also fundamentally support cryptocurrencies, including Bitcoin, in the middle term. Investors are encouraged to stay alert and learn risk management techniques from the market’s biggest players. This happens as the macro environment continues to shape trends.

Overall, after the recent sell-off, Bitcoin price returned to mainstream economic indicators and investors’ sentiment. As a result, future predictions of Bitcoin’s development are heavily impacted by technical and economic aspects, including macroeconomic measures.

While traders continue to focus on these events, the relationship between the economic indicators and cryptocurrency price trends will determine the market’s direction over the next few weeks.