The price of Bitcoin (BTC) 
$93,822 fell below $100,000 on Tuesday, following better-than-expected economic data from the U.S. This decline in the cryptocurrency market marks a reversal of the positive momentum observed earlier this year. Prior to the data release, Bitcoin was trading around $101,000 but dropped to as low as $95,000 in response to the news.
U.S. Economic Data Shakes the Cryptocurrency Market
The U.S. reported a Job Openings and Labor Turnover Survey (JOLTS) showing 8.1 million job openings in November, exceeding analysts’ expectations of 7.7 million. Additionally, the ISM Services Purchasing Managers Index (PMI) was reported at 54.1 for December, above the anticipated 53.3. These two data points suggest a stronger-than-expected U.S. economy.
Millions of Dollars Wiped from the Market
This sudden price drop in the cryptocurrency market triggered the liquidation of over $600 million in long positions within 24 hours. On the short side, liquidations exceeded $60 million, bringing the total liquidation amount close to $700 million. This marks one of the first significant liquidations of 2025.
The robust economic data has also diminished expectations for interest rate cuts by the Federal Reserve. According to the CME FedWatch tool, the likelihood of a rate cut in March has fallen to 37%, with expectations for May dropping below 50%. Kyle Chapman suggests that major market players foresee only one rate cut in 2025, capping it at 25 basis points.
Currently, the cryptocurrency market continues to be influenced by U.S. economic data and interest rate policies. Undoubtedly, Bitcoin’s drop below critical levels will be a focal point for monitoring throughout the remainder of the year.
