Bitcoin Prices Fall 10% After Strong Data Creates Fed Rate Cut Doubts

finance
Created 1/8/2025
Updated 1/8/2025

Bitcoin prices dropped 10% this week, falling below USD93,000, as robust U.S. economic data reduced expectations for Federal Reserve rate cuts. Strong job and PMI reports pushed Treasury yields higher, dampening demand for risk assets like Bitcoin. Analysts cite Bitcoin's correlation to tech stocks and investor caution ahead of key events like the FOMC minutes and job reports. If inflation remains controlled and rate cuts resume, Bitcoin could challenge its all-time high, though near-term pressure persists due to hawkish monetary policy signals.

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