🚨 Bitcoin Dips Below $98K Amid Strong U.S. Economic Data and $300M Crypto Liquidations 🚨

Stronger-than-expected U.S. economic reports rattled global markets, sending Bitcoin (BTC) tumbling below the $100,000 mark and sparking a wave of liquidations across the crypto space.

📊 Key Developments

BTC Drops Over 4%:

Bitcoin fell to $97,800, erasing recent gains and breaking below the psychological $100K level.

Major altcoins followed, with ETH and SOL down 6%-7%, and AVAX and LINK plummeting 8%-9%.

Economic Data Behind the Drop:

JOLTS Job Openings: Rose to 8.1M in November (vs. expectations of 7.7M), signaling a robust labor market.

ISM Services PMI: Climbed to 54.1 in December (vs. forecast of 53.3), with the Prices Paid subindex surging to 64.4 (vs. 57.5 expected).

Bond Market Impact:

The strong data pushed the 10-year U.S. Treasury yield to 4.68%, approaching multi-year highs.

U.S. equities stumbled, with the Nasdaq down 1% and the S&P 500 down 0.4%.

💥 Crypto Liquidations Surge

Nearly $300M in long positions were liquidated across derivatives markets.

This marks the first major leverage flush of 2025, reflecting heightened volatility.

🔍 Why It Matters

1. Fed Rate Cut Expectations Rolled Back:

Investors now price in only one rate cut for 2025, down from multiple cuts expected earlier.

The odds of a March rate cut dropped from nearly 50% to just 37%, per the CME FedWatch Tool.

2. Crypto Market Volatility:

The sell-off underscores the sensitivity of crypto markets to macroeconomic factors like interest rates and bond yields.

🚀 What’s Next?

With BTC and other major assets in retreat, investors are eyeing:

Upcoming Fed meetings for guidance on interest rate policy.

Economic reports that could either confirm or challenge the resilience of the U.S. economy.

Technical levels for Bitcoin, with $95,000 emerging as a critical support zone.

Stay tuned as crypto markets navigate renewed macroeconomic pressures.

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