Bitcoin’s price fell to $92.5K following stronger-than-expected US jobs data.
The broader crypto market also declined, erasing a 12-hour rally.
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Bitcoin erased its 12-hour rally on Friday, retreating to $92.5K in the immediate aftermath of stronger-than-expected US jobs data.
The largest crypto asset by market cap printed 14 consecutive hourly green candles earlier in the day, climbing 3.5% from just below $92,000 to $95,000.
However, the release of robust economic data reversed the trend, pulling Bitcoin and the broader crypto market into the red.
The US economy added 256,000 jobs in December, significantly surpassing forecasts of 160,000.
The unemployment rate dipped to 4.1% from November’s 4.2%, signaling a hotter-than-anticipated labor market.
The report comes amid expectations of Federal Reserve rate cuts in 2025, which are now being scaled back following the jobs data.
Bitcoin’s decline mirrored a broader selloff in the crypto market, with total market capitalization down 2% over the past 24 hours, according to CoinGecko.
Major altcoins, including Ethereum, Solana, and Dogecoin, also erased their gains from the past day, returning to levels seen 24 hours ago.
The jobs data adds to a week of volatility for Bitcoin, which had started the week near $103,000 before falling to a low of $92,000 on Thursday.
The report’s impact was felt across traditional markets as well, with US stock index futures down about 1%, the 10-year Treasury yield climbing nine basis points to 4.78%, and the dollar index rising 0.6%.
Traders have quickly scaled back expectations for further Federal Reserve rate cuts in 2025, with CME FedWatch showing the odds of a March rate cut dropping to 25% from 41% before the jobs report.
The market has since recuperated slightly, with Bitcoin trading at $93,500 at press time, though it remains down overall.
Short-term Bitcoin investors are selling at a loss, creating potential accumulation opportunities.
Indicators like MVRV and NUPL suggest that the Bitcoin market remains in an upward trend.
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Bitcoin’s decline has created a prime opportunity for accumulation, according to CryptoQuant analyst Mac_D.
The token has shown no signs of strength following its sell-off from weekly highs of $103,000 on Monday, but long-term metrics suggest the market’s upward trend remains intact.
Analyst MAC_D reported on Thursday that the current bearish sentiment aligns with a dip in Bitcoin’s short-term SOPR (Spent Output Profit Ratio), which has fallen to 0.987.
This metric indicates that investors holding Bitcoin for less than six months are now selling at a loss.
MAC_D noted that such periods of short-term investor losses have historically presented favorable accumulation opportunities.
“When short-term investors incur losses, long-term cycle indicators like MVRV, NUPL, and the Puell Multiple often show that the market remains in an upward trend,” he said.
He added that the current correction does not suggest a cycle peak, and savvy investors may seize the opportunity to accumulate Bitcoin at discounted prices.
Historical data indicates that long-term investors often step in to accumulate Bitcoin during market corrections as short-term holders sell at a loss.
This behavior, often observed during market corrections, can set the stage for a price rebound as selling pressure subsides. At press time, Bitcoin is trading at $93,500.
Litecoin’s X account was hacked to promote a fake Solana-based token with the same LTC ticker.
Hackers are increasingly using targeted phishing emails disguised as X team communications to steal user credentials.
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The official X account of Litecoin appeared to have been compromised earlier today, according to numerous reports from crypto community members. The hacker used it to promote a fraudulent Solana-based token sharing the same LTC ticker as the legitimate digital asset.
The unauthorized post, which included a Solana contract address for the fake Litecoin token, briefly drove the scam token’s market capitalization to $27,000 before it plunged to $3,400, per DEX Screener. The tweet was subsequently removed.
“Be cautious [about] any tweets coming from this account until the team confirms they have regained full access to the account,” warned a user.
In a recent statement, Litecoin confirmed that its account was hacked and investigations are still underway. The team reported having found and removed a delegated account that was targeted by the hacker.
Litecoin’s X account was briefly compromised today and posts that were not authorized were published. These were live only for a matter of seconds before being deleted. We’re still investigating the issue, but immediately found a delegated account that was compromised and removed…
The incident follows a pattern of social media account compromises targeting high-profile crypto projects and individuals. In December, similar attacks hit the Cardano Foundation’s X account, which was used to spread false information about a nonexistent SEC lawsuit and promote a fraudulent Solana-related token.
Blockchain investigator ZachXBT reported that between late November and December, a single threat actor accumulated approximately $500,000 through meme coin scams launched via more than 15 compromised X accounts, including Kick, Cursor, Alex Blania, The Arena, and Brett.
The investigator also identified a common attack vector where hackers send phishing emails disguised as X team communications about copyright infringement, attempting to trick users into visiting fraudulent sites to reset their two-factor authentication and passwords.
Bitcoin experienced its worst weekly performance due to a strong dollar and Trump’s potential tariff plans.
Despite short-term challenges, long-term structural tailwinds for Bitcoin and digital assets remain intact.
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Bitcoin’s rise of over 45% in the aftermath of the November 5 presidential election had already lost steam. Analysts anticipate more turbulence ahead as President-elect Donald Trump’s proposed tariff plans and robust employment figures drive bond yields higher, strengthening the dollar and putting pressure on digital assets.
“Bitcoin’s problem at the moment is the strong dollar,” Zach Pandl, head of research at Grayscale Investments, told CNBC, noting that the Fed’s recent signal helped in part strengthen the dollar.
Bitcoin was off to a strong start this week, reclaiming $102,000 on Monday, CoinGecko data shows. However, the rally was short-lived; the flagship crypto asset dropped below $97,000 the next day and extended its slide toward the end of the week.
“I would attribute the drawdown in the last two days largely to the market starting to appreciate that not every aspect of the Trump policy agenda is going to be positive for Bitcoin,” Pandl addressed the recent decline, adding that Trump’s proposed tariff plans introduce uncertainty into the market.
Trump is considering declaring a national economic emergency to facilitate his plans for implementing universal tariffs, CNN reported Wednesday. This, coupled with related economic policies, could create a range of inflationary pressures. Yet, no final decision has been made regarding this declaration as of now.
While there was initial optimism regarding a pro-crypto environment under Trump’s administration, conflicting signals about the extent of tariffs could create volatility and negatively impact risk assets like Bitcoin.
Continued high interest rates
Stronger-than-expected payroll numbers in December 2024 indicate that there may be less urgency for the Fed to lower rates to stimulate the economy. Following the report, investors have lowered their expectations for near-term interest rate cuts.
As of the latest data from the CME FedWatch Tool, market participants are leaning toward the probability that the Fed will keep interest rates unchanged during its upcoming meeting on January 28-29, with a likelihood of 97%.
The Fed cut rates by 25 basis points last month, but it also delivered a hawkish message showing a cautious approach moving forward. The central bank projected only two rate cuts this year, down from previous projections of more reductions due to ongoing inflationary pressures and economic conditions.
With a cautious Fed and uncertainties surrounding Trump’s economic agenda, “it’s possible risk assets will face choppiness over the near term, despite long-term structural tailwinds for Bitcoin and digital assets remaining intact,” according to Alex Thorn, head of research at Galaxy Digital.
Pro-crypto legislation may take some time
Potential positive impacts from pro-crypto legislation may not materialize quickly as Congress is expected to prioritize non-crypto issues over the next three months, according to JPMorgan analyst Kenneth Worthington.
Yet, Worthington is confident that Congress will eventually shift its attention back to digital assets and take up important crypto-related legislation, like potential frameworks for stablecoins and market structure.
The New York Digital Investment Group (NYDIG) has the same viewpoint.
In a recent report, NYDIG’s research head Greg Cipolaro suggests that immediate changes to crypto policy are unlikely. He points to various governmental processes, such as official appointments and confirmations, that could delay the implementation of new policies.
The analyst also notes that other legislative priorities may take precedence, further delaying crypto-specific initiatives despite a generally positive outlook for digital assets from Trump’s prospective appointments.
Federal Reserve Governor Waller hinted at multiple interest rate cuts in 2025 due to promising inflation data.
Bitcoin surged above $99K following better-than-expected inflation figures, with traders eyeing a breakout past $100K and altcoins rallying strongly.
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Federal Reserve Governor Christopher Waller hinted at multiple rate cuts in 2025 if inflation continues its current disinflationary trend.
Speaking on CNBC Thursday, Waller said, “The inflation data we got yesterday was very good,” referencing the latest figures showing a cooldown in price pressures.
He added that if similar inflation data continues to be reported, it would be reasonable to expect rate cuts in the first half of the year, with the possibility of a cut as early as March.
Waller also suggested that future cuts could exceed current market expectations if inflation falls in line with December’s favorable data.
The two-year Treasury yield, which closely reflects Federal Reserve policy changes, dropped to 4.25% after Waller’s comments. Markets are now expecting 40 basis points of rate cuts in 2025, up from 34 basis points earlier.
Waller cautioned that the pace of cuts remains data-dependent. “If the data doesn’t cooperate, then you’re going to be back to two, maybe even one [cut] if we just get a lot of sticky inflation,” he said.
The labor market continues to influence the Fed’s outlook, with recent data showing steady job growth and lower unemployment at the end of 2024. Waller characterized the labor market as “solid, not booming.”
Bitcoin responded positively to Wednesday’s CPI release, aligning with Waller’s optimistic inflation outlook.
The asset briefly surpassed the $100,000 resistance level and has been trading between $98,000 and $100,000 over the past 48 hours, with Bitcoin still struggling to break and hold above the $100,000 mark.
This level, a psychological barrier since Bitcoin first reached it in early December, had proven difficult to sustain. Earlier this week, Bitcoin fell below $90,000, but the better-than-expected inflation data reignited bullish sentiment, driving the price upward once again.
Bitcoin’s market dominance has decreased to 57% since Monday. Alternative digital assets have posted gains, with Solana rising 8% and XRP increasing 15% over the past 24 hours.
Meanwhile, the DXY remains on a downward trend but is still higher than levels from a month before Donald Trump’s election victory.
Many expect the DXY to drop once Trump takes office, as was observed during his first term after the 2016 election, when it initially rose before declining in 2017.
Canary Capital’s Litecoin ETF might be the first spot crypto ETF approved by the SEC in 2025.
The CFTC classifies Litecoin as a commodity, differentiating it from other digital assets facing regulatory challenges.
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Canary Capital’s Litecoin ETF is well-positioned to become the first spot crypto ETF approved by the SEC under the incoming Trump administration, given Litecoin’s commodity status, according to Bloomberg ETF analyst Eric Balchunas.
Following Canary Capital’s amended S-1 filing yesterday, Nasdaq submitted a 19b-4 form to the SEC on Thursday, formally beginning the review process for the Canary Litecoin ETF. The SEC now has 45 days from Federal Register publication to approve or deny the listing, with a possible 45-day extension.
Nasdaq’s 19b-4 form
According to Balchunas, the Litecoin ETF application has met all the necessary requirements and conditions for approval.
“Litecoin ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either given SEC gave comments on the S-1, Litecoin is seen as commodity and there’s new SEC sheriff in town,” Balchunas wrote on X on Thursday.
Balchunas stated Wednesday that the SEC had provided feedback on Canary Capital’s S-1 filing for their proposed Litecoin ETF. This prompted the firm to submit the amendment.
James Seyffart, Balchunas’ fellow Bloomberg ETF analyst, noted that “A 19b-4 would actually start the potential approval/denial clock.”
Canary Capital filed its Litecoin ETF S-1 statement with the SEC in October 2023. The amended filing names US Bancorp Fund Services as the ETF administrator, with Coinbase Custody Trust and BitGo serving as custodians for the ETF’s Litecoin holdings.
CFTC classifies Litecoin as a commodity
The CFTC labeled Litecoin as a commodity in its lawsuit against crypto exchange KuCoin, thereby exempting it from the SEC’s securities regulations.
CFTC called Litecoin a commodity in a filing in March 2024
The SEC has not taken any official action or made any public pronouncements that definitively categorize Litecoin as either a security or not a security.
Unlike Litecoin, Ripple and Solana have faced explicit SEC scrutiny. Ripple continues to be engaged in ongoing litigation with the SEC, which maintains that its native token, XRP, constitutes a security.
The SEC has also classified Solana’s SOL token as a security in separate cases against Binance and Coinbase. These legal disputes remain unresolved.
Rosseti Group is exploring cryptocurrency mining opportunities at underutilized power centers.
The company aims to coordinate mining infrastructure deployment and increase revenue and tax payments.
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Rosseti, Russia’s largest power grid operator, is exploring crypto mining operations at its underutilized power centers and aims to become a coordinator for mining infrastructure deployment across the country, according to state news agency TASS.
“The Rosseti Group is the largest grid company in Russia and can act as an operator for coordinating the placement of mining infrastructure,” the company told TASS.
The state-owned energy provider sees crypto mining as an opportunity to utilize spare capacity at low-load power centers, which could increase both the company’s tariff revenue and tax payments while contributing to economic development.
The grid operator confirmed its technical readiness for mining operations, noting that its infrastructure is equipped with the necessary switching equipment to manage mining facility loads. The company also maintains operational data on available capacity and consumption patterns to ensure reliable regional power supply.
Rosseti is currently discussing various aspects of its mining development strategy, including the potential introduction of a separate tariff structure for miners as a demand management tool.
Last August, President Vladimir Putin signed a law regulating crypto mining as part of the country’s digital asset management strategy. Under the law, only registered entities and individual entrepreneurs are allowed to engage in large-scale crypto mining operations in Russia.
Due to power shortages, the Russian government has banned crypto mining in several regions starting January 1, 2025, extending through March 15, 2031.
