Why is Bitcoin Cs Down Today? Check out the reasons!

Bittime - The crypto market experienced a sharp decline, with Bitcoin down about 5% from its recent high of $102,000. This drop took Bitcoin to the $96,500 level, where it remained several hours after the initial drop. 

The decline came amid stronger-than-expected US jobs data and the Federal Reserve's interest rate projections showing stability, which dampened hopes of monetary easing.

Data from the JOLTS report showed that job openings in the United States increased to 8.1 million in November, up from a revised 7.8 million in October. 

This labor market strength dampened hopes for monetary easing, suggesting that the Federal Reserve may not cut interest rates any time soon. 

The CME FedWatch tool shows a 95% probability that the Fed will keep interest rates on hold at its upcoming meeting, negatively impacting crypto market sentiment.

Also read: Bitcoin Price Returns to $100K Again, To The Moon or Dropping Again?

Impact of Downturn on Other Digital Assets

In reaction to the strong economic data, the broader crypto market also experienced a decline. Ethereum is down 6.4%, XRP is down 4.8%, Solana is down 5.7%, and Dogecoin is down 6.5% in the last 24 hours. 

The drop led to more than $400 million in liquidations, with $275 million occurring in just four hours. Previously, the crypto market had seen an increase of more than 11% in early 2025 before experiencing this setback.

Technical analysis shows that short-term Bitcoin holders face challenges in maintaining profitability amidst volatile price movements. 

On-chain data shows that more and more investors are holding this digital asset at or near losses, potentially leading to profit-taking and hindering Bitcoin's upward momentum in the near term.

Dogecoin, which is one of the most popular digital assets, is currently battling a major resistance level defined by the macro 0.5 Fibonacci extension around the price of $0.40. 

Crypto analyst Kevin Doops highlighted this level as a “moment of truth” for DOGE, noting that a successful breakout was critical for the token to aim for higher levels. If Dogecoin cannot break this level, it is likely to experience further declines.

Also read: Bitcoin Performance Beats S&P 500, Is This the Right Time to Buy Bitcoin?

Long Term Prospects

Despite the current challenges, some experts remain optimistic about the long-term bullish outlook for Bitcoin and the crypto market as a whole. However, the near-term picture remains uncertain, as investors must navigate the impact of changing macroeconomic factors and market sentiment.

With the crypto market continuing to develop, investors and traders will be closely monitoring key economic indicators, Federal Reserve policy decisions, and technical levels to gauge potential future price movements. 

The interaction between these factors will likely shape the trajectory of Bitcoin and other digital assets in the coming weeks and months.

FAQ 

Why is Bitcoin down now?

Bitcoin is down about 5% from its recent high on strong US jobs data and the Federal Reserve's stable interest rate projections, which dampened hopes of monetary easing.

What impact will Bitcoin's decline have on other digital assets?

Bitcoin's decline has had a negative impact on other digital assets, such as Ethereum,

Is there any prospect for Bitcoin price recovery?

Despite the short-term challenges, some experts remain optimistic about the long-term bullish outlook for Bitcoin and the crypto market, even though the current situation remains uncertain.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

blockonomi.com, Why is Crypto Down Today? Bitcoin Retreats to $96.5K as U.S. Job Openings Rise, accessed January 8, 2025.

Author: AWW