Bitcoin Price USD Drops on Strong US Jobs Report

The latest US jobs report has shaken the financial markets, causing a decline in risk assets, including Bitcoin. The strong employment numbers and low unemployment rate have led to a reassessment of interest rate cut expectations, prompting a drop in Bitcoin's price and a surge in bond yields.

Goldman Sachs and Bank of America have both downgraded their rate cut forecasts, with the former predicting only two cuts in 2025 and the latter seeing a potential rate hike. This shift in expectations has resulted in a decline in risk assets, with Bitcoin prices plummeting below $93,000, representing a 1.6% drop. The Bitcoin price USD has also been affected by elevated Treasury yields and a stronger dollar index, which has made stocks and risk assets less attractive to investors.

The robust US jobs data has reinforced the Fed's case for keeping rates steady, crushing expectations of further cuts. This has sent bond yields soaring, making risk assets like Bitcoin and crypto less attractive. Analysts predict that the price could extend its loss to $80,000 if support above $90,000 fails. However, some traders remain bullish, citing increasing institutional adoption and growing investor confidence, which could position Bitcoin for further price discovery.

The correction in the crypto market has also affected altcoins and AI tokens, with top AI tokens NEAR, ICP, Render, and TAO losing between 5-7% in 24 hours. Experts attribute the correction to profit-taking, macroeconomic factors, and seasonality, with the $100,000 milestone remaining a key resistance level for Bitcoin. As the market continues to navigate the uncertainty surrounding interest rates and economic growth, investors will be closely watching the Bitcoin price USD for any signs of recovery or further decline.