Bitcoin Drops to $91,000 Amid Market Uncertainty Over U.S. Jobs Report

Bitcoin fell to a one-month low of $91,000 early Tuesday, reflecting market anxiety ahead of the U.S. December jobs report. With U.S. stock markets closed for the state funeral of former President Jimmy Carter, cryptocurrency markets bore the brunt of economic uncertainty.

As of 9 a.m. on January 10, Bitcoin was trading at $92,601, down 2.49% from the previous day and 4.38% from the previous week, according to CoinMarketCap. Ethereum also declined, trading at $3,223.43, down 3.10% for the day and 6.64% for the week. Other major cryptocurrencies, including Solana and Dogecoin, dropped by 6%, while Cardano and Tron fell by approximately 4%.

After a strong rally following the November presidential election, the cryptocurrency market shifted to bearish territory on December 18 when the Federal Reserve adopted a hawkish monetary policy stance. Despite some initial momentum at the start of the year, stronger-than-expected economic data and inflation reignited macroeconomic concerns, pressuring the market.

Tuesday's decline coincided with heightened uncertainty around the upcoming jobs report. Analysts warned that strong employment data could eliminate the possibility of a rate cut in 2025 and prompt markets to factor in further rate hikes.

CoinDesk reported that prominent trader Skew attributed the sell-off to headlines suggesting additional Bitcoin sales linked to Silk Road. However, an analysis of Binance’s order book showed robust liquidity below current price levels, with buying pressure outweighing selling pressure.

Skew noted, “The lack of significant volatility is worth highlighting. There isn’t much selling, and buyers are stepping in, suggesting the situation isn’t as bad as it seems.”

Trader Eugene Ng Asio observed that Bitcoin, Ethereum, and Solana are all retesting their December 5 lows. He remarked, “People are starting to accept that these levels may not hold, which is often when fear dominates the market.”

Ng identified $90,000 as a critical support level for Bitcoin, warning that a break below this threshold could see prices fall to $85,000.

Meanwhile, Joe McCann, founder of venture capital firm Asymmetric Capital, projected that Bitcoin could dip as low as $75,000 if it fails to hold the $90,000 support level.

The market remains volatile as investors await further economic signals from the jobs report and broader macroeconomic conditions.