Bitcoin Slides as Fed Rate Cut Doubts Follow Strong Jobs Report

Market Overview - Bitcoin experienced a decline of 2% to approximately $67,500, while altcoins like Ethereum and Solana fell by 3% and 3.4% respectively [1] - Last week, Bitcoin reached a low of $62,800 before partially recovering to $71,500, marking its lowest price in 14 months [2] Economic Indicators - The U.S. Department of Labor reported an addition of 130,000 jobs in January, significantly surpassing the expected 70,000 jobs, with the unemployment rate decreasing to 4.3% [2] - Fed Chair Jerome Powell indicated a data-dependent approach for future interest rate adjustments, maintaining the current target range of 3.50% to 3.75% [3] Interest Rate Expectations - The likelihood of the Federal Reserve cutting interest rates in March has decreased, with traders now estimating an 8% chance, down from 20% the previous day [4] - Most traders do not anticipate a rate cut in March, although bond markets suggest that expectations remain relatively stable [5] Impact on Risk Assets - The stronger labor market reduces the pressure on the Fed to lower interest rates, which could hinder the recovery of risk assets, including cryptocurrencies [4] - Lower interest rates typically benefit risk assets by encouraging investors to seek higher returns, but cryptocurrencies have struggled despite major stock indexes reaching record highs [5]