Bitcoin (BTC) encountered renewed turbulence on Jan. 10 as US macroeconomic data dampened expectations of significant crypto capital inflows. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping $1,500 after December nonfarm payrolls (NFP) exceeded forecasts. The stronger-than-expected labor market data, coupled with lower unemployment figures, put pressure on risk assets, including Bitcoin. Markets interpreted the results as reducing the likelihood of significant Federal Reserve interest rate cuts in the near future. With less aggressive rate cuts anticipated, the potential for increased liquidity flowing into Bitcoin and other crypto assets diminished. According to the CME Group’s FedWatch Tool, the probability of even a modest 0.25% rate cut at the Fed’s January meeting stood at just 2.7%. Keith Alan, co-founder of Material Indicators, commented on the market reaction, stating: “NFP comes in HOT, the UNRATE comes in cold, which is great news for the strength of the economy, so why did BTC and the broader market dump? Simple. This points to fewer FED Rate Cuts in 2025.” Alan also noted the seasonal impact on the data and speculated that the incoming Trump administration might enact policies with significant economic implications. Liquidity data on Binance highlighted $88,000 and $90,000 as key support zones for BTC/USDT. Despite the macroeconomic dip, BTC maintained a familiar trading range, with clear support and resistance levels visible. Popular trader Daan Crypto Trades advised: “Market is either up only or down only on these smaller timeframes. In the end, many get chopped up. Zooming out is my recommendation.” Analyst Rekt Capital offered a bullish outlook, pointing to a bullish divergence in Bitcoin’s relative strength index (RSI) and highlighting historical patterns in price discovery corrections. “It is the first Price Discovery Correction of this cycle. As a result, it has a high probability of reversal,” Rekt Capital concluded.
