Bitcoin (BTC) price falls towards $90,000

US stock markets were closed on Thursday in memory of former President Jimmy Carter, but cryptocurrencies are running 24/7 and bearing the brunt of any jitters ahead of tomorrow’s December employment report.

In late afternoon action, the price of Bitcoin (BTC) returned to levels not seen in over a month, barely holding above $91,000 and falling about 3% over the past 24 hours.

Wider CoinDesk 20 Index Likewise down, but notable underperformance includes Solana (SOL) and Chainlink (LINK), both down by double-digit percentages.

The continued sell-off in cryptocurrencies follows a significant rally in the fourth quarter of 2024, driven by Donald Trump’s victory in November and hope for a friendlier regulatory environment outside of Washington, D.C.

Other factors supporting cryptocurrencies include easier monetary policy, as the US Federal Reserve has cut its overnight interest rate by 100 basis points since September. However, that leg was cut short after a series of economic reports showed that the economy and inflation were much stronger than markets and the central bank had expected. This, in turn, has caused yields on long-term interest rates to rise by more than 100 basis points since the Fed began cutting short-term interest rates.

Today’s selling comes ahead of the December jobs report on Friday morning. Another in a long line of strong economic data could prompt markets to not only scrap the idea of ​​any interest rate cuts in 2025, but perhaps begin to appreciate the need to raise rates in the coming months.

How low can Bitcoin fall?

“BTC, ETH and SOL are now revisiting the range lows recorded on December 5, and people are starting to accept the fact that these levels may not hold,” well-followed trader Eugene Ng Ah Siu said in a statement. Share X. “This is when most people start to panic.”

He said the next support level for Bitcoin is $85,000 if it falls to $90,000.

Joe McCann, founder of venture capital fund Ametric Capital, to publish That BTC could target $75,000 if Bitcoin does not hold the $90,000 line.

Prominent trader deviation He said Thursday’s price drop could have been driven by headlines regarding additional Bitcoin sales linked to the Silk Road. In a separate post analyzing Binance order book data, Skew said the liquidity of bids ready to buy bitcoin below current prices is strong, outpacing sellers.

“The thing to note here is that there is no volatility behind the price here, which is partly because the selling flow is not as large, and the amount of bidding liquidity outweighs the current selling pressure,” Skew said. “This doesn’t seem that bad.”