Bitcoin bulls lost bullish momentum in the crypto market again as BTC price fell below $97.5K, from an intraday high of $102,712. Traders anticipate an overall bullish outlook at the start of 2025 as the crypto-friendly Donald Trump administration takes control on January 20. However, the markets braced for temporary liquidity concerns and volatility risks amid jobs data and FOMC minutes release. Bitcoin Loses Earlier Gains After Jobs Data The JOLTS jobs openings increased by 259,000 to 8,098 million for November 2024, according to the U.S. Bureau of Labor Statistics . This indicates the labor market remains strong and the Fed rate cuts may be limited in 2025. JOLTS jobs data has increased for two consecutive months now. The job openings have increased in professional and business services, finance and insurance, and private educational services. Meanwhile, ISM Services Prices PMI shows the US economy remains strong. The resilience of the US ahead of Trump’s inauguration day fueled concerns about volatile market conditions. In fact, US stocks declined on Tuesday, ending a two-day rally, as fresh economic data fueled speculation that the Federal Reserve may keep rates steady this month despite rising inflation. This caused the US dollar index (DXY) to rebound sharply over 108.50, after a two-day low move that caused a recovery in Bitcoin price. Also, the 10-year Treasury yield increased to a 35-week high of 4.68%. BTC Price Falls 5% Within An Hour BTC price fell 5% in the past 24 hours, with the price currently trading at $97,566. The 24-hour low and high are $$97,153 and $$102,712, respectively. Furthermore, the trading volume has increased by 27% in the last 24 hours, indicating a decline in interest among traders. Source: TradingView Bitcoin price has skyrocketed over 10% in a week and may break above the previous ATH on bullish macroeconomic and technical factors. The upside move is supported by inflows into the spot Bitcoin ETFs , indicating institutional interest returning. According to K33 Research , Bitcoin and crypto prices jumped after the strongest 2-day flow to ETFs since mid-November. Moreover, BTC open interests inches higher, recording a solid 7-day streak of positive daily returns. The price of Bitcoin has jumped back to the $100,000 mark, a sign that shows the Coinbase Premium Index is back to positive. Source: CryptoQuant Bitcoin Price Hits Over $102K On Donald Trump’s Inauguration Bitcoin’s recent drop reflects a seasonal lull during the Christmas holiday period. These trends are now reversing to create a bullish momentum in the global markets, according to Matrixport. Moreover, investors expect the upside momentum to sustain as Donald Trump enters the White House on January 20. His pro-crypto administration to work on providing crypto regulatory clarity in the country, creating a framework that other countries may adopt. Trump’s strategic Bitcoin reserve plans saw massive adoption from other countries and states. Meanwhile, BitMEX co-founder Arthur Hayes has predicted a severe correction in Bitcoin and the crypto market in mid-March. His prediction came based on declining US dollar liquidity. While the Reverse Repo Facility (RRP) and the US Treasury’s General Account (TGA) will maintain bullish momentum, it may not continue further after March. The post Why Bitcoin Price Is Dropping Suddenly After Recovery to $102K? appeared first on CoinGape .
