Bitcoin (BTC) remains the center of investor interest and interest, especially after the crisis Latest nonfarm payrolls data From the US Bureau of Labor Statistics (BLS). While overall market sentiment remains bullish, recent developments in the US economy suggest that macroeconomic factors may be against the leading cryptocurrency in 2025.
Currently, Bitcoin is trading at over $94,000 after another turbulent price performance that resulted in a 3.45% loss in the past seven days.
The Fed’s pivot to cutting interest rates is over – analysts
in Share X On December 10, market experts at global capital markets analysis firm The Kobeissi Letter analyzed the Employment Situation Summary for December 2024. According to the Bureau of Labor Statistics, nonfarm payrolls rose by 256,000 jobs this month , indicating an additional 100,000 jobs to the widely expected numbers. .
Following this report, The Kobeissi Letter analysts highlight that the US economy has gained an average of 165,000 jobs since July, which represents the highest 6-month average since July 2024.
Given that the US Federal Reserve has begun implementing interest rate cuts from September 2024 citing lower job growth and inflation, analysts at The Kobeissi Letter stated that Apex Bank’s approach may have been misguided in light of recent developments.
Therefore, the Fed is expected to pause interest rate cuts to fight higher inflation expected due to strong jobs data, with the possibility of adopting interest rate hikes.
In general, the absence of interest rate cuts or interest rate hikes is a negative for Bitcoin, as lower interest rates give investors the ability to transact in risky assets like cryptocurrencies. Following the Fed’s previous announcement of potential interest rate cuts in 2025, Bitcoin saw a sudden collapse of more than 9% in mid-December as investors moved to close their volatile positions across financial markets.
Currently, Copisi’s letter predicts that the Fed’s pivot to lower interest rates is likely over, with a 44% probability that there will be no rate cuts until June 2025.
Bitcoin price overview
At the time of writing, Bitcoin is trading at $94,028, reflecting a 0.22% gain over the past 24 hours. Meanwhile, the major cryptocurrency has fallen by 3.72% and 6.35% in the past 37 days, respectively.
Despite the possibility of interest rate cuts in 2025, Bitcoin investors are likely to maintain bullish sentiment due to other factors including historical price performance in a bull cycle, an expected pro-crypto US government and ongoing institutional investment via spot ETFs.
With a market capitalization of $1.84 trillion, Bitcoin continues to rank as the largest cryptocurrency and the eighth largest asset in the world.
Featured image from Investopedia, chart from Tradingview
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