Bitcoin retreats to $92.5k as strong US jobs data reverses 12-hour gains

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Bitcoin price drops to $92.5k following better-than-expected US jobs data. The broader crypto market was lower, breaking a 12-hour rally.

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Bitcoin erased its 12-hour rally on Friday and retreated to $92.5k following better-than-expected US jobs data.

The largest crypto asset by market cap posted 14 consecutive hourly green candles on the day, rising 3.5% from below $92,000 to $95,000.

However, the release of strong economic data reversed the trend and dragged Bitcoin and the broader crypto market into the red.

The US economy added 256,000 jobs in December, beating forecasts by 160,000.

The unemployment rate fell to 4.1% from 4.2% in November, indicating a better-than-expected labor market.

The report comes amid expectations of Federal Reserve rate cuts in 2025, which are now easing after jobs data.

Bitcoin's decline reflected a broader sell-off in the crypto market, with total market capitalization down 2% over the past 24 hours, according to CoinGecko.

Major altcoins, including Ethereum, Solana and Dogecoin, have erased their gains from the previous day and returned to levels seen 24 hours ago.

The jobs data adds to one-week volatility for Bitcoin, which started the week around $103,000 before falling to a low of $92,000 on Thursday.

The impact of the report was also felt in traditional markets, with US stock index futures down 1%, the 10-year Treasury yield up nine points to 4.78%, and the dollar index up 0.6%.

Traders raised expectations for more Federal Reserve rate cuts in 2025, with CME FedWatch dropping to 25% from 41% ahead of the jobs report.

The market has recovered somewhat since then, with Bitcoin trading at $93,500 at press time, although it is down overall.

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