Key Points:
- Bitcoin dropped over 3% while the US stock market rallied.
- Strong January jobs data suggests interest rate cuts will be delayed.
- Analysts warn that a lack of buyer demand leaves prices vulnerable.
- Ether also fell nearly 4%, dropping to an intraday low of $1,931.
Bitcoin and the stock market are moving in opposite directions again. While US stocks rallied on Wednesday thanks to a strong jobs report, the world’s biggest cryptocurrency slid downward. This divergence shows that crypto investors remain nervous following the recent crash in digital asset prices.
In early New York trading, Bitcoin fell as much as 3.3%, landing around $66,354. Ether, the second-largest coin, also took a hit, dropping 3.8% to hit a low of $1,931. This decline erases much of the hope traders felt just a few days ago when the market seemed to stabilize.
Alex Kuptsikevich, a market analyst at FxPro Group, noted that Bitcoin has now fallen below the $67,000 mark. He pointed out that the coin has lost about half of the gains it made during its massive recovery rally last Friday. The market is struggling to hold onto its momentum after a volatile week.
The main driver behind this drop appears to be the new January jobs data. The report showed the economy is stronger than expected, which signals that the Federal Reserve will likely keep interest rates high for longer. Traders now predict the next rate cut won’t happen until July, pushing back previous hopes for June. Typically, lower interest rates boost risky assets like Bitcoin, so this delay is discouraging for crypto holders.
This decline comes right after a wild week. Last Thursday, the crypto market melted down, dragging Bitcoin more than 50% below its peak from last October. While prices surged back up on Friday, that recovery is starting to look shaky. Tony Sycamore from IG Australia believes the market lacks a clear reason to bounce back permanently right now.
Analysts are also worried about the lack of buyers. Laurens Fraussen from Kaiko warned that the “order books” are thin. This means there aren’t many people waiting to buy at current levels. Without strong buyer support, even a small amount of selling pressure could push prices down much further.
