Bitcoin Briefly Hits $90,000 Before Declining; Market Shows Volatility Amid Economic Data and Anticipated Rate Hike
Bitcoin briefly surged to $90,000 before falling back to about $85,000, with the price recorded at $85,921 and a daily change of around -2%. Earlier, BTC had dipped as low as $85,373. Approximately $155 million in Bitcoin derivatives contracts were liquidated in the past day.
Prediction market odds for Bitcoin reclaiming $100,000 have dropped from 69% to 57%, with the likelihood of a Santa rally cited as under 4%. Additionally, Bitcoin ETFs experienced $634 million in outflows this week, including two consecutive days of outflows prior to the rally.
Ethereum also showed weakness, sliding 4% to about $2,824 after previously trading above $3,000. Over the past week, ETH is down 16%.
The U.S. Bureau of Labor Statistics released unemployment data showing the rate at its highest level since 2021, based on two months of jobs data.
Market participants expect the Bank of Japan to raise interest rates on Friday, potentially tightening liquidity and impacting yen carry trades. According to Bitwise CIO Matt Hougan, this rate increase is fully anticipated and should already be priced in, which may cause short-term downward pressure on markets.
