Why cryptocurrencies are falling today: Bitcoin and technology stocks fall as economic strength challenges hopes of lower prices

Markets fell on hotter-than-expected economic data, with Bitcoin falling more than 5%.

Cryptocurrency and traditional markets saw significant declines on January 7, 2025, driven primarily by stronger-than-expected economic indicators that could delay expected interest rate cuts from the Federal Reserve.

Bitcoin fell to $96,909, registering a decline of more than 5% over the past 24 hours.

The sharp correction saw over $483.44 million worth of long positions liquidated in just 24 hours, according to Coinglass data. Other major cryptocurrencies followed suit, with Ethereum falling more than 8%, and Solana stock falling more than 7%.

On the other hand, the JOLTS report for November showed higher than expected employment opportunities, although employment decreased compared to the previous month. The smoking cessation rate, which indicates worker confidence, fell to 1.9% from 2.1% in October.

These economic indicators have prompted investors to reset their expectations for interest rate cuts, with traders now seeing less than a 50% chance of a rate cut before June. The Fed is widely expected to maintain current interest rates at its next meeting in January.

The stock market reflected these concerns, with the S&P 500 falling 1.1% and the Nasdaq Composite falling 1.9%. Nvidia shares fell 6.2% despite CEO Jensen Huang announcing new AI initiatives at CES.

This article contains links to third party websites or other content for information purposes only (“Third Party Sites”). These Third Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third Party Site, including, without limitation, any link contained in a Third Party Site, or any changes or updates to a Third Party Site. Party website. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended for use only and should be used for informational purposes only. It is important to conduct your own research and analysis before making any material decisions regarding any of the products or services described. This article is not intended to provide financial advice and should not be construed as financial advice. The views and opinions expressed in this article are those of the author [company’s] These are their own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or validity of any project, and we aim to act as an impartial information resource for end users.