Following its usual recent pattern, crypto markets plunged as US stocks opened on Tuesday, but recovered much of their losses in an equally swift manner.
Bitcoin in morning trading BTC$69,519.36 was $69,200, down slightly from 24 hours ago. ether Ethereum$2,030.55 It underperformed by 1.8%, resulting in a similar decline in profit. $XRP $XRP$1.4171 and solana sol$84.59.
Kaitaka said that although Bitcoin’s current decline is the largest since its halving in 2024, trading volumes remained low during the decline, suggesting retail investors retreated rather than rushed to sell.
“The market is1771061079approaching a critical technical support level that will determine whether the four-year cycle framework remains in place,” Silkworm research analyst Laurence Frausen said in a report on Tuesday.
Trading firm Wintermute expects Bitcoin to remain in its current range as it is still in the price discovery phase.
The company said recent Bitcoin movements have been driven by leveraged derivatives rather than spot demand, and low spot volume has made the price sensitive to position congestion. Wintermute pointed to last Friday’s rally as a short squeeze in perpetual futures, saying investors who had been complacent for a while were caught off guard by the resurgence in volatility.
Employment statistics for January have been announced
The government’s January nonfarm payrolls report, originally scheduled for last Friday, will now be released Wednesday morning due to last month’s brief federal government shutdown.
Economists predict that employment will rise by 70,000, up from 50,000 in December. The unemployment rate is expected to remain at 4.4%.
But White House trade adviser Peter Navarro said in a Fox interview on Tuesday that forecasts needed to be revised down significantly. His comments follow comments from White House economic adviser Kevin Hassett, who advised markets not to panic over the weak jobs report.
Those comments appear to have caught the attention of the bond market, with the yield on the 10-year Treasury note falling 5 basis points to 4.14%. Lower interest rates and the Federal Reserve’s easy monetary policy are usually considered good for assets like Bitcoin, but that hasn’t been the case this cycle, with Bitcoin plummeting despite the Fed cutting interest rates by 75 basis points in recent months.
