Why does Bitcoin price suddenly fall after recovering to $102,000?

Bitcoin bulls lost bullish momentum in the cryptocurrency market once again as Bitcoin price fell below $97.5K, from an intraday high of $102,712. Traders are anticipating a general bullish outlook at the start of 2025 as the crypto-friendly Donald Trump administration takes control on January 20. However, markets will temporarily brace for liquidity concerns and volatility risks amid jobs data and the release of minutes from the upcoming FOMC meeting.

Bitcoin loses previous gains after jobs data

JOLTS employment rose by 259,000 to 8,098 million for November 2024, according to US Bureau of Labor Statistics. This suggests that the labor market remains strong and that Fed rate cuts may be limited in 2025. JOLTS jobs data has increased for two straight months now. Job opportunities have increased in Professional and business services, finance and insurance, and special educational services.

Meanwhile, the ISM Services PMI shows that the US economy remains strong. US resilience ahead of Trump’s inauguration day has raised concerns about market conditions. In fact, US stocks fell on Tuesday, ending a two-day rally, as new economic data fueled speculation that the Federal Reserve may keep interest rates steady this month despite rising inflation.

This caused the US Dollar Index (DXY) to rebound sharply above 108.50, following a two-day low that caused the Bitcoin price to rebound. The 10-year Treasury yield also rose to a 35-week high of 4.68%.

BTC price fell by 5% within an hour

The price of BTC has fallen by 5% in the past 24 hours, and the price is currently trading at $97,566. The 24-hour low and high are $97,153 and $102,712 respectively. Moreover, trading volume has increased by 27% in the last 24 hours, indicating a decline in interest among traders.

Bitcoin price has risen by more than 10% in a week and may exceed the previous ATH due to bullish macroeconomic and technical factors. The upward movement is supported by inflows Spot Bitcoin ETFsThis indicates a return of institutional interest.

according to Search K33Bitcoin and cryptocurrency prices jumped after the strongest two-day inflow of ETFs since mid-November. Furthermore, Bitcoin open interest has surged, recording a strong 7-day series of positive daily returns.

The price of Bitcoin has jumped back to the $100,000 level, which is a clear sign Coinbase token indicator Back to positivity.

The price of Bitcoin reaches more than $102,000 when Donald Trump is inaugurated

Bitcoin’s recent decline reflects a seasonal lull over the Christmas holiday period. These trends are now reversing to create upward momentum in global markets, according to Matrixport.

Moreover, investors expect bullish momentum to continue as Donald Trump enters the White House on January 20. His pro-crypto administration will work to provide regulatory clarity for cryptocurrencies in the country, creating a framework that other countries may adopt. Trump’s strategic plans for Bitcoin reserves have seen widespread adoption from other countries and states.

Meanwhile, Arthur Hayes, co-founder of BitMEX, predicted… Sharp correction in Bitcoin And the cryptocurrency market in mid-March. His expectations were based on the decline in liquidity in the US dollar. While the reverse repo facility (RRP) and the US Treasury General Account (TGA) will maintain the upward momentum, it may not continue further beyond March.