Bitcoin (BTC) Falls 0.3% to $94.3K as Stronger-Than-Expected US Payroll Data Sparks Caution

Bitcoin price declined on Monday, notching its third straight session of losses as stronger-than-expected U.S. payroll data sparked caution among traders, with the robust labor market暗示ing the Federal Reserve will carry out fewer interest rate cuts in 2025, pressuring cryptocurrency markets.

Bitcoin fell 0.3% to $94,268.7 at 01:04 ET (06:04 GMT), after hitting a record high of $95,000 on Friday. The world’s largest cryptocurrency had gained about 30% so far this year after notching a stellar 60% gain in 2024.

But Bitcoin’s gains have slowed in recent months as the Federal Reserve began raising interest rates to quell inflation. Higher interest rates and elevated Treasury yields typically reduce liquidity, making it harder for riskier assets like cryptocurrencies to perform well. Analysts have warned that if yields continue to rise, it could drag Bitcoin prices down to $90,000.

Adding to market concerns were reports that the U.S. government is planning to sell its Bitcoin holdings. Last week, media outlets reported that the Department of Justice had court approval to sell $6.5 billion of Bitcoin that was seized from the darknet marketplace Silk Road. Previous liquidations by the government have introduced additional supply, weighing on prices.

Broader cryptocurrency markets followed Bitcoin lower on Monday, with ether down 1.6% to $3,229.02, Solana down 1.3%, and Polygon down 4.8%. Meme coin Dogecoin slid 3.2%. However, XRP bucked the trend, rising 3.8% to $2.5139.

Among other developments, crypto exchange FTX announced plans to launch a stock trading platform in the coming months, subject to regulatory approval. The Bahamas-based exchange, which had a valuation of $32 billion in January, also unveiled a new venture fund to back Web3 startups.

Meanwhile, concerns over Federal Reserve policies and potential government actions highlighted ongoing volatility in cryptocurrency markets, with Bitcoin’s performance remaining a key influence on altcoin trends.