Bitcoin Falls on US Data

Bitcoin is back on a downtrend after rallying above $100,000. A strong US employment report showed the economy is still strong. Job postings hit 8.1 million, above expectations, suggesting the Federal Reserve won’t be cutting interest rates anytime soon.

This is making borrowing expensive, making risky investments like BTC less attractive. The ISM Services PMI data also showed the US economy is strong and pushed Treasury yields higher, pushing BTC below $98,000.

The Link Between Bitcoin and Stocks

Bitcoin’s decline along with US stocks is notable. Strong economic data led to a sell-off in stocks, which Bitcoin followed suit. Investors are cautious amid concerns about interest rate hikes.

Bitcoin’s Pattern is Worrying

Some analysts believe Bitcoin is forming a head-and-shoulders pattern. This could mean that prices could fall to $75,000. However, Bitcoin’s history is full of surprises and predictions are often wrong.

When Will Bitcoin Recover?

The interest of institutional investors and potential crypto-friendly policies suggest that Bitcoin could remain strong in the long term. If these policies are realized, they could provide a solid foundation for Bitcoin’s next rally.