#CryptoMarketDip

The cryptocurrency market has recently experienced a notable downturn. Bitcoin, for instance, has declined by approximately 5.2% to $96,503, with an intraday low of $96,077. Ethereum has also seen a drop of about 8.7%, bringing its price to $3,351.23. This decline is largely attributed to stronger-than-expected U.S. labor market data, which has diminished hopes for imminent Federal Reserve interest rate cuts. Lower interest rates typically benefit risk-on assets like cryptocurrencies by increasing available investment capital and making bond yields less attractive. However, persistent inflation pressures suggest that rate cuts may be delayed, leading to investor concerns about potential economic instability. Additionally, the recent downturn in U.S. and Chinese stock markets has contributed to the decline in digital asset prices, as stocks and cryptocurrencies often exhibit correlated movements.