Investing.com — Bitcoin fell on Monday, falling for a third straight day, as stronger-than-expected US payrolls data sparked caution among traders, strengthening the Federal Reserve's view of tapering interest rate cuts in 2025.
It fell 0.3% to $94,268.7 by 01:12 ET (06:125 GMT).
Bitcoin prices fell sharply last week, having fallen six of the previous seven sessions as potential token sales by the US government eroded sentiment towards the cryptocurrency.
Interest rate tensions in the US raise concerns about liquidity
Strong US data released on Friday supported the Federal Reserve's expectations of lower interest rates this year. In December, the US economy added 256,000 jobs, exceeding expectations of 153,000 jobs, and the unemployment rate fell to 4.1% from 4.2% in November.
This strong performance in the labor market suggests that the Fed may adopt a more cautious approach to monetary easing.
Higher interest rates can put downward pressure on Bitcoin and other cryptocurrencies, as they often lead to a stronger US dollar and less liquidity in financial markets.
Additionally, higher Treasury yields have been linked to a decline in the price of Bitcoin, with some analysts suggesting that continued high yields could push the value of Bitcoin to around $90,000.
Bitcoin is under pressure due to reports of government selling
Another factor influencing Bitcoin market dynamics is the potential for government sales of seized cryptocurrencies.
Last week, media reports emerged that the Justice Department had received court approval to sell approximately $6.5 billion worth of bitcoin confiscated from the Silk Road black market.
The US government has previously liquidated Bitcoin assets acquired through law enforcement actions, and the possibility of future sales could create additional supply in the market, which could impact prices.
This would also likely conflict with the idea of a strategic reserve for Bitcoin under the Donald Trump administration, putting further pressure on the token.
Cryptocurrency Price Today: Most altcoins are recording steeper declines than Bitcoin
In the broader cryptocurrency market, Bitcoin's performance continues to influence other digital assets.
The world's No. 2 cryptocurrency fell 1.6% to $3,229.02.
Bucking this trend, the world's No. 3 cryptocurrency rose 3.8% to $2.5139.
It decreased by 1.3%, decreased by 4.8%, and decreased by 6.2%. Among tokens, it lost 3.2%.
