Stronger-than-expected job openings and ISM Services PMI rolled back investor expectations for further rate cuts for this year.
Bitcoin (BTC) fell more than 4% with major altcoins including ETH and SOL dropping 6%-9%.
Behind the move were renewed cycle highs in U.S. bond yields following stronger than expected economic data.
Investors continued to roll back their hopes for further Federal Reserve rate cuts, now pricing in only one rate reduction for the entire year.
Crypto markets stumbled with bitcoin (BTC) losing the $100,000 level on Tuesday U.S. morning as two stronger-than-expected U.S. economic data prints threw cold water on digital assets' bright early-year momentum.
The Bureau of Labor Statistics' JOLTS job openings for November unexpectedly rose to 8.1 million from 7.8 million the previous month, easily topping analyst estimates for a decline to 7.7 million.
Released at the same time, the ISM Services Purchasing Managers Index, a monthly gauge of the level of economic activity in the services sector, came in at 54.1 for December, overshooting expectations for 53.3 and nicely ahead of November's 52.1. The Prices Paid subindex came in red-hot at 64.4, compared to the expected 57.5 and 58.2 in the previous month.
While neither report generally tends to be much of a market mover, combined they further shook up an already jittery bond market, sending the 10-year U.S. Treasury yield higher by another five basis points to 4.68% and within a few ticks of multi-year highs. The move took U.S. stocks lower, with the Nasdaq now off by more than 1% in late morning action and the S&P 500 lower by 0.4%.
BTC, which traded just below $101,000 through European afternoon hours, dipped to $97,800 following the data, giving up yesterday's gains and down 4% over the past 24 hours. Altcoin majors declined even more with Ethereum's ether (ETH) and Solana's SOL losing 6%-7%, while Avalanche's AVAX and Chainlink's LINK tumbled 8%-9%.
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