Following the usual recent pattern, the cryptocurrency market fell sharply as U.S. stocks opened on Tuesday, but recouped most of the losses just as quickly.
In morning trading, Bitcoin The price is $69,200, down slightly from 24 hours ago. ether Underperforming, down 1.8%, XRP also suffered a similar decline and Solana .
Kaiko said that although Bitcoin’s current decline is the worst since the 2024 halving, trading volume has remained low during the decline, indicating that retail investors will withdraw rather than rush to sell.
“market [is now] Approaching key technical support levels, which will determine whether the four-year cyclical framework remains intact,” Kaiko Research analyst Laurens Fraussen wrote in a note on Tuesday.
Trading firm Wintermute expects Bitcoin to remain within its current range as it is still in the price discovery phase.
The firm said recent Bitcoin moves have been driven by leveraged derivatives rather than spot demand, which has lower trading volumes, making prices sensitive to crowded positioning. Wintermute pointed to Friday’s rally as a short squeeze in perpetual futures and said the return of volatility caught investors off guard after a period of complacency.
January jobs report to be released soon
The government’s January non-farm payrolls report, originally scheduled for Friday due to the brief federal shutdown last month, was now released Wednesday morning.
Economists predict 70,000 jobs will be added, up from 50,000 in December. The unemployment rate is expected to remain at 4.4%.
However, White House trade adviser Peter Navarro said in an interview with Fox on Tuesday that expectations need to be revised downwards significantly. His comments followed the advice of White House economic adviser Kevin Hassett, who advised markets not to panic over weak jobs data.
These comments appear to have been noticed by the bond market, with the 10-year Treasury yield falling 5 basis points to 4.14%. Lower interest rates and loose Fed monetary policy are generally considered beneficial for assets such as Bitcoin, but that has not been the case this cycle, with Bitcoin plunging despite the Fed cutting interest rates by 75 basis points in recent months.