Bitcoin drops over 5% to $96,200 after strong U.S. economic data signals fewer Fed rate cuts in 2025

economictimes.indiatimes.com:

Bitcoin dropped over 5% to $96,200 after hitting the $100,000 mark in the previous session. The decline followed upbeat U.S. economic data, which suggested a strong economy and bolstered the case for fewer rate cuts from the Federal Reserve.

Recent data showed that U.S. services sector activity accelerated in December, and job openings increased in November. This resilience in the American economy suggests fewer rate cuts from the Fed in 2025.

Markets are now pricing in the probability of just one Fed rate cut in 2025, down from two in December, according to the CME FedWatch tool. The Fed had previously indicated two rate cuts for this year, half of what was earlier expected.

At 10:43 am IST, Bitcoin was trading at $96,400, down 5.4%, with an intraday high of $102,022 and a low of $96,132.

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«Bitcoin and the broader crypto market saw a sharp pullback today following stronger-than-expected US economic data. US’ 10-year treasury yield has risen to 4.68%, near multi-year highs, triggering a swift drop in crypto asset prices and a $504 million