As reported by The Block, Bitcoin underwent considerable fluctuations within the last day, initially plunging to a temporary low of $95,000 late Thursday, only to make a marginal recovery to approximately $97,000 at the time of reporting. Data from CoinGecko reveals that the worldwide crypto market cap now totals $3.32 trillion, marking a 2.9% drop within a single day.
Analysts from QCP Capital expressed uncertainty towards the crypto market’s trajectory in light of a three-day downward trend. They also highlighted that the caution trickling down from broader financial markets is placing additional pressure on digital currencies.
Investors are keeping a close eye on the forthcoming non-farm payroll and unemployment data for January, which might offer insights into the potential direction of interest rates for the upcoming year. Predictions suggest a decrease in job additions to the economy, with estimates of 170,000 compared to December’s 256,000, while unemployment is expected to remain at 4.1%. QCP Capital analysts noted the cautious market sentiment ahead of this non-farm payroll announcement.
The CME FedWatch tool’s analysis shows dwindling expectations for further interest rate cuts. As it stands, interest rate traders are forecasting an 85.5% chance that rates will remain unchanged at the subsequent FOMC meeting on March 19. Looking ahead, the possibility of a 25-basis-point reduction in June stands at 45.2%. However, traders still anticipate a 37% chance of rates remaining steady at June’s monetary policy meeting.
The analysts from QCP Capital drew attention to the derivatives market data that demonstrated interest in Bitcoin end-of-February puts at $80,000 and $90,000 strike prices, signaling a bearish trend.
In related news, the U.S. Securities and Exchange Commission is reducing its crypto enforcement unit, a move believed to aid the formation of a new crypto task force and encourage a more positive relationship with the industry. This is part of the recent efforts by U.S. President Donald Trump to deregulate the crypto sector.
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