Bitcoin Plummets 10% as Fed Rate Cut Hopes Dim Amid Strong Economic Data

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

This week, Bitcoin prices have experienced a significant decline of approximately 10%, dropping below $93,000. According to Forbes, this downturn was triggered by robust economic data that raised concerns about the Federal Reserve's pace in cutting interest rates. The digital currency fell to $92,500 after reaching as high as $102,700 earlier in the week.

The reassessment of rate cut expectations has led to increased U.S. Treasury yields and a sell-off in risk assets like Bitcoin. Analysts such as Marc P. Bernegger from AltAlpha Digital attribute these movements to strong job data and PMI figures suggesting a more conservative monetary policy approach by the Fed.

What to Expect as Bitcoin Bleeds and Crypto Market Cap Shrinks?

FXStreet reports that Bitcoin is facing mounting selling pressure with its price hovering around $95,000 support levels on Wednesday. This pullback comes amid an overall crypto market cap reduction by 7% within just one day.

The article highlights how macroeconomic factors are influencing BTC trends for 2025 despite previous gains driven by institutional investments and ETF approvals last year. Experts suggest further consolidation may occur before demand returns unless there’s renewed market 'risk appetite'.

Bitcoin’s Sharp Drop Ahead of FOMC Minutes—Why Crypto Market Is Struggling Today

The Currency Analytics notes that anticipation surrounding key economic events contributed significantly to today's sharp drop in cryptocurrency values including Bitcoin which saw its price fall close to $96,000.

A surge in global trading volume alongside decreased total market capitalization reflects heightened trader concern over potential impacts from upcoming ADP Nonfarm Employment report releases coupled with insights expected from forthcoming FOMC minutes regarding future federal policies affecting inflationary pressures, impacting cryptocurrencies negatively due to higher anticipated interest rate environments globally.

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