Bitcoin fell to $94,000 as US employment data and political factors caused short-term fluctuations.

robot
Abstract generation in progress

In early 2025, the Bitcoin market is volatile, with multiple factors raising concerns among investors.

As 2025 approaches, the cryptocurrency market has entered a turbulent period. The price of Bitcoin has fallen after breaking through the $100,000 mark, sparking speculation about future trends.

At the beginning of this week, Bitcoin reached a high of over $102,000 but then quickly fell back. During the US trading session, Bitcoin dropped to a low of $92,600, with a decline of nearly 10% within two days. The current price hovers around $94,000.

The decline of Bitcoin has triggered a correction in the entire cryptocurrency market. Ethereum has dropped to $3300, and Solana has fallen below the $200 mark. Other small-cap tokens have generally declined by about 10%. This round of adjustment has also affected the U.S. stock market, with several cryptocurrency mining companies' stock prices experiencing a drop of 5-8%.

Although the current decline is relatively controllable, market sentiment has noticeably cooled as the price of Bitcoin is close to the level at the beginning of the year. Some analysts even predict that Bitcoin may fall to $70,000 in the short term.

69,000 coins for sale, with risk aversion surging, could Bitcoin drop to $70,000?

The recent decline was mainly influenced by several factors:

First of all, the latest employment data released by the United States exceeded expectations. Job vacancies in November exceeded 8 million, reaching a new six-month high. At the same time, the December services PMI also came in better than expected. These data indicate that the US economy remains strong, which may prompt the Federal Reserve to maintain a high interest rate policy for an extended period.

69,000 coins for sale, risk aversion sentiment surges, will Bitcoin drop to $70,000?

Secondly, some recent remarks by former President Trump have raised concerns in the market. Reports indicate that Trump is considering declaring a "national economic emergency" to pave the way for large-scale tariff increases. This could have an impact on global trade and the economy.

In addition, news that the U.S. government may sell approximately 69,000 Bitcoins has also put pressure on the market. These Bitcoins come from the seized dark web market "Silk Road", with a total value of about $6.5 billion.

69,000 coins for sale, risk aversion surges, could Bitcoin fall to $70,000?

Despite the pressure on the market in the short term, there are also some positive factors worth paying attention to:

The lawsuit between Coinbase and the SEC has taken a turn, potentially bringing positive changes to cryptocurrency regulation. The chairman of the U.S. Commodity Futures Trading Commission ( CFTC ) is about to step down, and his successor may be more friendly toward cryptocurrencies.

Data shows that despite small investors reducing their holdings, large holders have recently shown an increasing trend. Some institutional investors started buying after Bitcoin fell below $100,000.

69,000 coins for sale, risk aversion sentiment surges, could Bitcoin drop to $70,000?

Regarding the sale of "Silk Road" Bitcoin, some analysts believe the impact may be overstated. The selling process may take months and could be conducted through over-the-counter trading, resulting in limited market impact.

Overall, although market sentiment is cautious in the short term, the likelihood of a significant decline is low. Bitcoin prices may fluctuate in the range of $90,000 to $95,000. Investors will closely watch the U.S. non-farm payroll report to be released this Friday, as this data could influence the Federal Reserve's policy direction.

69,000 coins for sale, risk aversion surges, could Bitcoin drop to $70,000?

BTC-2.3%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Share
Comment
0/400
HashRatePhilosophervip
· 07-24 01:50
The range is shaking, when will it end?
View OriginalReply0
GateUser-9ad11037vip
· 07-21 18:20
Walking sideways is also 90,000.
View OriginalReply0
BlockchainGrillervip
· 07-21 18:20
Hehe, it's Trump's fault again.
View OriginalReply0
StableGeniusvip
· 07-21 18:14
as predicted. whales accumulating while retail panics... classic market psychology
Reply0
BearMarketSurvivorvip
· 07-21 18:12
fell again, what a big tail wolf
View OriginalReply0
DeFiAlchemistvip
· 07-21 17:59
the celestial alignments whisper of a 100k btc transmutation soon... *adjusts crystal ball*
Reply0
GasGasGasBrovip
· 07-21 17:54
One hundred thousand is not a dream
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)