Bitcoin Dips Below $98K, Loses 4% in 24 Hours as Robust US Economic Data Dashes Rate Cut Hopes

A surge in U.S. job openings and a robust Services PMI report caused Bitcoin to dip below $98K, ending its recent rally.

Bitcoin dropped below the $98,000 mark on Tuesday after strong U.S. job openings and ISM Services PMI data led to massive liquidations in the crypto market.

The higher-than-expected data impacted the market negatively, affecting Bitcoin and altcoins as it crashed the expectations of investors for more interest rate cuts. Bitcoin briefly rose and traded at around $101,000 then dropped to below $98,000 after the data was released. This marked a 4% decline within 24 hours.

Major cryptocurrencies like Ethereum, Solana and Avalanche also dropped and recorded 6% to 9% in losses. Liquidations surpassed $300 million across the crypto derivatives market as leveraged long positions were closed quickly.

More than $230 million occurred in the last 4 hours of trading. According to CoinGlass, long positions account for approximately $212 million of the total liquidations.

The U.S Bureau of Labor Statistics reported a sudden increase in job vacancies to 8.1 million in November. The figure surpassed the 7.7 million which was expected by most analysts.

At the same time, the ISM Services PMI for December and November was above expectations at 52.1 at 54.1 respectively. The stronger-than-expected data further raised concerns in the bond market which caused a 4.68% rise in the 10-year U.S. Treasury yield.

The stock market also declined with the Nasdaq falling more than 1% and the S&P 500 down by 0.4%. The bond market’s reaction to the data caused a rapid drop in risk assets like cryptocurrencies.

Bitcoin’s Price Drops Below $98K On Strong U.S. Job Openings, ISM Services PMI PrintsThe impact of strong U.S. job openings and ISM Services PMI prints on Bitcoin (BTC) price was felt on Tuesday, as the primary cryptocurrency experienced a drop below the $98,000 level.

This development follows a period of market exuberance, during which Bitcoin had briefly risen and traded at around $101,000 before the data was released. However, the subsequent decline brought the coin to a price point that represents a 4% decrease within 24 hours.

Other major cryptocurrencies also encountered losses, with Ethereum (ETH) dropping by 6%, Solana (SOL) and Chainlink (LINK) both recording a 9% decline.

As a result of these losses, liquidations surpassed $300 million across the crypto derivatives market. This occurred as leveraged long positions were closed quickly, with more than $230 million taking place in the last 4 hours of trading.

According to data from CoinGlass, long positions account for approximately $212 million of the total liquidations.

U.S. economic data, which includes the number of job openings and the ISM Services PMI for December, was released on Tuesday, revealing higher-than-expected figures.

The Bureau of Labor Statistics reported that job openings increased to 8.1 million in November, exceeding analysts’ expectations of 7.7 million. Additionally, the ISM Services PMI for December and November came in at 52.1 and 54.1, respectively, both surpassing forecasts.

These strong data points impacted the bond market, causing the 10-year U.S. Treasury yield to rise by 4.68%. The stock market also declined, with the Nasdaq falling by more than 1% and the S&P 500 dropping by 0.4%.

The bond market’s reaction led to a rapid drop in risk assets, including cryptocurrencies. Bitcoin’s price fell below $98K on the back of this news.

Bitcoin’s recent price fluctuation highlights the increasing volatility of cryptocurrency markets. As market participants revise their expectations for 2025, especially regarding the possibility of potential rate cuts, the rapid liquidation and price correction further emphasize the volatility of the digital asset market.