Isabella García
The cryptocurrency market opened Monday on a bearish note, driven by concerns that monetary policy easing may slow down this year.
Bitcoin (BTC), the largest digital asset by market cap, saw a 0.9% decline over the past 24 hours, trading at $91,590.
XRP, commonly used on Ripple’s payment platform for transaction settlements, experienced a steeper drop, losing 3.2% and settling at $2.45.
Impact of U.S. Jobs Report on Crypto Prices
Friday’s hotter-than-expected U.S. jobs data triggered a market reaction as investors feared prolonged higher interest rates. Cryptocurrencies often experience price declines when interest rate hikes loom, as higher borrowing costs can curb speculative investments.
“The rate-cutting phase is likely behind us,” analysts from Bank of America noted following the release of December’s employment figures.
Federal Reserve Meeting on the Horizon
Investors now anticipate that the Federal Reserve will maintain current interest rates during its upcoming Federal Open Market Committee (FOMC) meeting scheduled for January 28-29. The expectation of steady rates has fueled cautious sentiment in financial markets, including crypto.
Broader Crypto Market Trends
- Ethereum (ETH): Dropped 2% in the last 24 hours.
- Solana (SOL): Down by 2.5%.
- Dogecoin (DOGE): Fell 3.1%, reflecting the overall negative market sentiment.
As regulatory and economic factors continue to influence crypto price movements, market participants remain attentive to signals from the Federal Reserve’s policy stance in the weeks ahead.
